Jobs report ‘seals the deal’ Fed needs to be aggressive on inflation: Kenny Polcari
SlateStone Wealth chief market strategist Kenny Polcari reveals where he’s ‘strategically’ putting money in the market on ‘Varney & Co.’
Consumer expectations for where inflation will be one year from now climbed to another record high in June, according to a key Federal Reserve Bank of New York survey published Monday, a worrisome sign for the U.S. central bank as it tries to cool surging prices.
The median expectation is that the inflation rate will be up 6.8% one year from now, toppling the previous high of 6.6% recorded in March, according to the New York Federal Reserve's Survey of Consumer Expectations. The outlook for price gains is the highest since the survey's inception in 2013. Despite that, three years from now, consumers see inflation cooling off slightly to 3.6% – down from the 3.9% recorded last month.
"Median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—increased at the one-year ahead horizon to a new series high, but remained unchanged at the three-year ahead horizon. Uncertainty at the five-year ahead horizon increased," the survey said.
With consumers lifting their expectations for inflation over the next year, they believe that things like gasoline, medical care, rent and tuition will also increase over the next 12 months. However, they expect that food prices will moderate in coming months.
AMERICANS SHELLING OUT AN EXTRA $5,000 A MONTH ON GASOLINE AS PRICES SKYROCKET