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.
