Americans’ Outlook for Medium, Longer-Term US Inflation Climbs

  • New York Fed survey shows rebound in 3-year price projections
  • Results underscore Fed’s desire for more evidence before cuts

Shoppers in Rosemead, California.

Photographer: Frederic J. Brown/AFP/Getty Images
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US consumer expectations for inflation over the next three years climbed in February — and increased even more sharply for the five-year horizon — a Federal Reserve Bank of New York survey showed.

Median three-year-ahead inflation expectations rose to 2.7% last month, rebounding from a record low in January. Five-year expectations, meanwhile, climbed to a six-month high of 2.9%. Projected year-ahead inflation was unchanged from January at 3%, the data out Monday showed.