Economists' Longer-Term Faith in Higher Inflation Falters: Chart

It wasn’t just the actual inflation data that showed a deceleration Friday: Results from the Federal Reserve Bank of Philadelphia’s latest quarterly survey of professional forecasters also revealed a drop in longer-term expectations for inflation. The decline in projections for average annual U.S. consumer price index increases over the next five years was the first since the fourth quarter of 2015, while 10-year expectations also moved lower. The results suggest less confidence than before among economists that Fed policy will bring about higher inflation on a sustained basis.

— With assistance by Sophie Caronello

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