NY FED SURVEY FINDS GENERAL EXPECTATIONS OF HIGHER INFLATION

Americans are anticipating higher inflation pressures in the coming years, according to the latest Survey of Consumer Expectations. Respondents project inflation rates of 3.3% for the next year, up from March's 3%, while inflation expectations for three years from now are slightly lower at 2.8%, down from 2.9% in the previous month. Similarly, five-year inflation expectations rose to 2.8% from March's 2.6%.

These projections exceed the Federal Reserve's target inflation rate of 2%. The central bank's preferred inflation measure, the personal consumption expenditures price index, showed a year-over-year increase of 2.7% in March, up from 2.5% in February. Respondents also anticipate high price pressures across various categories in the next year, including rent, food, gasoline, and medical costs. Expectations for home price increases over the next year reached their highest level since July 2022, with a projected rise of 3.3%.

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