U.S. consumers' expectations for how much inflation will change over the next year and the coming three years rose last month to the highest levels since 2013, per the latest survey of the New York Federal Reserve.
The research marks the year ahead gauge rising for the 10th straight month to a median of 5.2% in August. “Inflation expectations over the next three years increased to a median of 4.0%,” said Reuters.
On the other hand, the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data eased from the monthly high of 2.4% to 2.36% on Monday.
Considering the pre-data anxiety and the latest survey results, Reuters mentioned, “U.S. central bank officials are keeping a close watch on inflation expectations as they try to evaluate whether the pricing pressures triggered by the coronavirus pandemic will pass or have more lasting effects on the economy.”
Read: US Inflation Preview: CPI critical for taper, three scenarios for the dollar
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