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U.S. Inflation Expectations Hit Highest Level Since May 2023

The reading was up 0.3 percentage point from August and marked the highest level since May 2023.

,   and  TIPP Staff
2 min read
Inflation fears on the rise as one-year outlook in Fed survey hits highest level since May 2023. Pic via(@CNBC)

U.S. consumers’ inflation expectations rose sharply in September, with the median outlook for prices over the next year reaching 3.9%, according to the New York Federal Reserve’s Survey of Consumer Expectations.

The reading was up 0.3 percentage point from August and marked the highest level since May 2023.

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Households also raised their expectations for spending growth to 5.5%, another 0.3-point increase and the highest level since May 2023. Rising gasoline prices and higher Treasury yields have added to concerns about persistent inflation.

Markets largely expect the Federal Reserve to hold its benchmark interest rate at 3.75%-4% later this month. New York Fed President John Williams has said policymakers can take time to assess incoming data.

Longer-term expectations remain comparatively stable, with three-year expectations at 3.3% and five-year expectations at 3%.

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tippinsightsTIPP Staff

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