US Consumers’ Pessimism Grows, Long-Run Inflation Outlook Stable

US consumers expect slightly higher inflation in the near term and are growing more pessimistic about their finances, according to a monthly survey from the Federal Reserve Bank of New York.

Median expectations for year-ahead inflation rose slightly in February to 3.1%, from 3% in January, the New York Fed’s Survey of Consumer Expectations showed. Consumers’ outlook for inflation three and five years out held steady at 3%, potentially offering reassurance for policymakers with a close eye on such forecasts.