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US Consumers Expect Inflation Shock to Pass, NY Fed Survey Finds

  • Consumers expect prices to rise by about 3% in five years
  • Medium-term inflation expectations reached a plateau
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Kroszner Says Inflation Will Remain Elevated for Some Time

US consumers still largely expect the current inflationary shock to be temporary, and for price gains to be low and stable in the longer run, according to a report released Thursday by the Federal Reserve Bank of New York.

The survey, which confirmed earlier findings from the New York Fed, showed that while short-term inflation expectations are rising, consumers expect prices to rise by about 3% in five years. That suggests they expect the near-term surge in prices to fade over time, according to the researchers.