Economic news

Inflation Outlook Rises to Fresh Record in New York Fed Survey

2022.04.11 18:35

Inflation Outlook Rises to Fresh Record in New York Fed Survey
Inflation Outlook Rises to Fresh Record in New York Fed Survey

(Bloomberg) — U.S. consumers’ outlook for inflation climbed to a new high last month as price expectations for food and rent soared. 

The median one-year inflation expectation rose to 6.6%, from 6% a month earlier, in the March consumer survey of consumer expectations released Monday by the Federal Reserve Bank of New York. In three years’ time, the respondents anticipate a 3.7% inflation rate, down from 4.2% six months ago.

The increase in short-term expectations was broad-based across age, education, and income groups, according to the report. Inflation also pushed the one-year outlook for household spending and rent growth to new highs in data going back to 2013.

The data suggest that consumers anticipate more pain from current wave of high inflation before it eases. They expect home prices to rise 6% over the coming year — up from 5.7% in February. Expectations for year-ahead rent growth edged up to 10.2%, while food prices are now expected to increase by 9.6%.

The share of respondents expecting unemployment to be higher in a year’s time than it is now also increased, to the most since February 2021. Consumers also see a greater risk of losing their jobs,  and a lower probability of finding a new one if that happens. 

Respondents also anticipate more stress on household budgets. The average perceived probability of missing a minimum debt payment over the next three months increased by 1.9 percentage points to 11.1%, above its 12-month trailing average of 10%. And more respondents reported being worse off financially than they were a year ago.

The Federal Reserve last month started what is expected to be a series of interest rate hikes to tame inflation.

“It will take some time to get inflation down,” Loretta Mester, president of the Federal Reserve Bank of Cleveland, said on CBS’s Face the Nation on Sunday. “Inflation will remain above 2% this year and even next year, but the trajectory will be that it’ll be moving down.”

Consumer prices probably rose 8.4% last month from a year earlier, according to a Bloomberg survey of economists ahead of data due Tuesday. That would be the fastest annual rate since early 1982, reflecting higher energy costs in the wake of Russia’s invasion of Ukraine. The projected monthly price-increase of 1.2% would be the sharpest since 2005.

Economists surveyed by Bloomberg expect consumer-price inflation of 6.9% this year, falling to 2.9% in 2023.

©2022 Bloomberg L.P.

 

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,165.30 0.64%
ethereum
Ethereum (ETH) $ 3,424.16 2.14%
tether
Tether (USDT) $ 1.00 0.14%
solana
Solana (SOL) $ 258.09 0.85%
bnb
BNB (BNB) $ 659.08 1.92%
xrp
XRP (XRP) $ 1.47 2.65%
dogecoin
Dogecoin (DOGE) $ 0.438474 6.55%
usd-coin
USDC (USDC) $ 0.998956 0.19%
cardano
Cardano (ADA) $ 1.08 2.10%
staked-ether
Lido Staked Ether (STETH) $ 3,421.97 2.19%
tron
TRON (TRX) $ 0.215531 4.08%
stellar
Stellar (XLM) $ 0.607459 45.80%
avalanche-2
Avalanche (AVAX) $ 42.32 4.12%
the-open-network
Toncoin (TON) $ 6.44 16.00%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 2.84%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,054.29 2.15%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,780.20 0.82%
polkadot
Polkadot (DOT) $ 9.33 28.71%
chainlink
Chainlink (LINK) $ 17.92 7.86%
bitcoin-cash
Bitcoin Cash (BCH) $ 518.72 2.26%
sui
Sui (SUI) $ 3.51 1.27%
weth
WETH (WETH) $ 3,424.00 2.03%
pepe
Pepe (PEPE) $ 0.000021 2.92%
leo-token
LEO Token (LEO) $ 8.61 0.95%
near
NEAR Protocol (NEAR) $ 6.44 5.86%
litecoin
Litecoin (LTC) $ 101.73 0.81%
aptos
Aptos (APT) $ 13.23 5.15%
uniswap
Uniswap (UNI) $ 10.99 8.94%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,607.00 2.21%
hedera-hashgraph
Hedera (HBAR) $ 0.153014 4.39%
internet-computer
Internet Computer (ICP) $ 12.02 10.64%
crypto-com-chain
Cronos (CRO) $ 0.19831 5.62%
usds
USDS (USDS) $ 0.999081 0.10%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.587442 13.93%
ethereum-classic
Ethereum Classic (ETC) $ 30.21 5.03%
render-token
Render (RENDER) $ 7.96 3.38%
bittensor
Bittensor (TAO) $ 542.67 3.16%
kaspa
Kaspa (KAS) $ 0.154425 1.12%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.48 11.40%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.09%
arbitrum
Arbitrum (ARB) $ 0.893289 10.57%
cosmos
Cosmos Hub (ATOM) $ 9.31 21.86%
bonk
Bonk (BONK) $ 0.000049 5.05%
filecoin
Filecoin (FIL) $ 6.03 23.24%
whitebit
WhiteBIT Coin (WBT) $ 24.72 0.27%
vechain
VeChain (VET) $ 0.043485 13.30%
dai
Dai (DAI) $ 0.999643 0.10%
mantra-dao
MANTRA (OM) $ 3.74 4.03%
dogwifcoin
dogwifhat (WIF) $ 3.36 0.45%
celestia
Celestia (TIA) $ 7.61 31.10%