The New York FED consumer inflation report expects US inflation to reach 5.2% by the next year-economy

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The Americans are still very concerned about inflation, since the latest report on consumer expectations (SCE) from August indicates that the US consumers expect an inflation rate of 5.2 % per year from now on. The SCE response data has not been as high since 2013, and they have increased since the previous month when US citizens expected 4.9% at that time.

month after month, the inflation expectations of consumers continue to increase

The costs for services and goods in the United States have risen sharply and the Americans are concerned about increasing inflation. Citizens have a good reason to worry about inflation, since the US Federal Reserve, because the Extreme expansion of the money supply since February 2020.

While there were many protests in American history after the Fed had saved the meg banks more than once, this time the Fed was excuse for at least one year. The US Federal Reserve naturally used the outbreak of Coronavirus (Covid-19) as the main reason that the tactics of quantitative loosening came so big on stage.

This time the entire American economy had to be saved, and after about a year after about a year complaints about inflation started to pursue The heads of the central bank. The prospects that result from the report of the New York Federal Reserve report on consumer expectations (SCE) have deteriorated since May compared to the previous month.

In July the SCE report an all-time high (ath) as far as Americas Inflation expectations. Essentially, the New York Fed uses a rotating panel of around 1,300 American households to create the SCE data. After July, the SCE indicators of the following month worse Since the results indicated that the concern for the loss of purchasing power grew.

ny fed: "Inflation expectations rose to new serial highs"

This concern has not laid down and The latest SCE report indicates that the American households are still concerned and a higher inflation awaits.

"The survey of consumer expectations of August 2021 shows that the short and medium-term inflation expectations have risen to new standard highs of 5.2 percent and 4.0 percent," says the SCE report of the New York FED. "The expectations for the growth of home prices continued to weaken in August, but remain increased."

The statistics of the central bank now show that the respondents imagine an inflation rate of 5.2 % for one year, while expectations will be around 4 % for three years. Not only the one-year metric rose, but the three-year data was only 3.7 %in the last SCE report.

In all reports, it was said in the month comparison that an ATH was exceeded, and this is because the SCE measurement values ​​only go back until 2013. The SCE results in August show both the one-year and three-year inflation expectations of consumers.

What do you think of the latest SCE report by the New York Fed, which shows much higher inflation expectations than ever? Let us know your opinion on this topic in the comments below.

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