By Jessica Dickler, CNBC •
Updated on May 10, 2021 at 1:55 pm
David Paul Morris | Bloomberg | Getty Images
Americans expectations for inflation over the next few years hit its highest level in nearly a decade, according to a new report by the Federal Reserve Bank of New York.
Overall, the expectation is that the inflation rate would be up to 3.4% one year from now its highest level since September 2013 and at 3.1% three years from now, according to the Fed survey for April. Download our mobile app for iOS or Android to get alerts for local breaking news and weather.
As the economy reopens in the wake of the coronavirus crisis, more Americans expect inflation to increase over the next few years.
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Provided by Dow Jones By Michael S. Derby American s expectations of future price increases jumped higher again in April, according to new data from the Federal Reserve Bank of New York. Households expectations of inflation levels one year from now grew to 3.4% in April from 3.2% in March, for the highest reading since September 2013, the bank said in its latest Survey of Consumer Expectations. The survey found expected inflation levels three years from now unchanged at 3.1%. The jump in overall expected inflation came as households projected notable price increases for homes, rent and other categories. Expected home price gains hit a record for the survey at a 5.5% rise, up from March s expected 4.8% increase. Rent costs were seen up by 9.5%, which the bank flagged as a record high and the fifth straight month of expected home price gains.
5/10/2021 3:05:29 PM GMT | By Eren Sengezer
The Federal Reserve Bank of New York s latest Survey of Consumer Expectations revealed on Monday that median inflation expectations at the one-year horizon rose to 3.4% from 3.2%, as reported by Reuters.
Additional takeaways Median three-year inflation expectations remained unchanged at 3.1%. Median year-ahead expectations for home prices and rent price growth increased to new series highs for survey launched in 2013. Median one-year ahead expected change in gas prices dropped to 9.2% in April, from a series high of 9.9% in March. Median expected household income growth fell to 2.4% in April from 2.8% in March. Median household spending growth expectations retreated slightly to 4.6% in April, driven by a decline among households with income above $100,000.
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