Economics
Year-Ahead Inflation Outlook Matches Record, NY Fed Survey Finds
- Household spending seen rising a record 9%, regional Fed says
- Three-year ahead inflation expectations hold steady at 3.9%
Shoppers inside a grocery store in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
US consumers expect prices to rise even faster over the next year, and that will propel spending to a record, according to a survey from the Federal Reserve Bank of New York.
One-year ahead median inflation expectations climbed in May to 6.6% from 6.3%, tying the highest reading since the survey began in June 2013. That’s going to take a bigger bite out of Americans’ wallets, as forecasts for household spending jumped for a fifth month by a series high 9%, the regional Fed said in its May Survey of Consumer Expectations.