Consumers See Higher Inflation in Year Ahead, NY Fed Survey Shows

Consumers see higher inflation in the year ahead, with signs that lower and middle-income households are feeling most of the burden of rising price pressures, according to a monthly survey from the Federal Reserve Bank of New York.

Expectations for consumer price increases one year ahead jumped to 3.4% in September from 3.2% in the prior month. The increase was most significant for households earning less than $50,000, and for consumers with at most a high school education. Estimates for annualized inflation five years ahead also ticked up to 3% from 2.9%, while measures for three years ahead were unchanged at 3%.