US Consumers Doubt Inflation Will Be Defeated in Year Ahead: New York Fed Data

U.S. consumer expectations for inflation and housing costs rose in April as Americans have become increasingly skeptical that public policymakers will vanquish inflationary pressures from the economy and return to the Federal Reserve’s 2 percent target. According to the New York Fed’s Survey of Consumer Expectations (SCE), one-year inflation expectations climbed to 3.3 percent, the highest reading since November. The one-year outlook hovered at 3 percent for four consecutive months. Median three-year-ahead inflation expectations tumbled from 2.9 percent to 2.8 percent, while the median five-year horizon jumped from 2.6 percent to 2.9 percent. Year-ahead commodity price projections were up across the board, led by college education (2.5 percent), medical care (0.6 percent), and rent (0.4 percent). Expectations that gas and food prices will rise over the next 12 months also jumped 0.3 percent and 0.2 percent, respectively....