Economics
Longer-Term Inflation Expectations Rise in New York Fed Survey
- Three-year expectation up to 3.9% in April, four-month high
- Reading for Americans under age 40 jumped to a record
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U.S. consumers project inflation in three years to be higher compared with a month ago, a potentially worrying sign for the Federal Reserve as the central bank tries to keep longer-term expectations anchored.
The median three-year inflation expectation rose in April to 3.9%, the highest since December, according to the latest consumer survey by the New York Fed. The one-year estimate softened to 6.35% from a record in March, largely thanks to a sharp drop in projections for the price of gas.