Home > Dynamic > U.S. consumers’ long...

U.S. consumers’ long-term inflation expectations have risen significantly

2024-03-12

305

A survey released by the Federal Reserve Bank of New York on the 11th showed that consumers' long-term inflation expectations rose sharply in February, making them more skeptical about whether the Fed can achieve its 2% long-term inflation target soon.

According to the survey results, consumers expect inflation in 2025 to be 3%, consistent with previous expectations. However, the three-year inflation expectation has increased by 0.3 percentage points to 2.7%, and the five-year inflation expectation has expanded to 0.4 percentage points, as high as 2.9%. All three are well above the Fed's target levels, which may mean that the Fed needs to maintain tight monetary policy for a longer period of time.

At the same time, consumers' expectations for housing rental prices fell by 0.3 percentage points to 6.1%, the lowest level since December 2020; expectations for natural gas prices in the next year increased by 0.1 percentage points to 4.3%; health care price expectations fell by 1.8 percentage points percentage points to 6.8%; but food price expectations remain at 4.9%. At the same time, consumers' expectations for household expenditures in the coming year increased by 0.2 percentage points to 5.2%.

In addition, respondents are uneasy about their employment prospects, and the probability that they will be unemployed next year increased by 2.7 percentage points to 14.5%.

Analysts point out that while the overall inflation rate, measured by the personal consumption expenditures price index favored by the Fed, has improved since last year, indicating that the Fed has made some progress in its battle against inflation, many economists warn that a return to 2% " "The last mile" will be incredibly difficult. A Chicago Mercantile Exchange tracking data for the Federal Reserve shows that the market still widely believes that the Fed will cut interest rates for the first time in June and cut interest rates three more times during the rest of the year.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

CM Trade

As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.

[Products]

The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.

[System]

2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate

[Service]

Comprehensive market news, professional market analysis, 7*24 hours online customer service

[Advantage]

Low cost, high leverage, flexible one-stop all day two-way trading.

[Authority]

Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.

Free Access
Daily Trading Strategy Download Now

CM Trade Mobile Application

Economics Calendar

U.S. consumers’ long-term inflation expectations have risen significantly

Access to global trading markets anytime and anywhere