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US Consumers Expect Inflation Shock to Pass, NY Fed Survey Finds
- Consumers expect prices to rise by about 3% in five years
- Medium-term inflation expectations reached a plateau
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US consumers still largely expect the current inflationary shock to be temporary, and for price gains to be low and stable in the longer run, according to a report released Thursday by the Federal Reserve Bank of New York.
The survey, which confirmed earlier findings from the New York Fed, showed that while short-term inflation expectations are rising, consumers expect prices to rise by about 3% in five years. That suggests they expect the near-term surge in prices to fade over time, according to the researchers.