The New York
Fed announced on Monday that the U.S. consumer inflation expectations for the
year ahead jumped to 3.6 per cent in March from
3.1 per cent in February. This represented the highest reading since October 2023 (3.6 per cent).
According
to the report, the anticipations about year-ahead change in the cost of medical
care surged 0.7 percentage point to 7.9 per cent, while those for rent soared
by 0.5 percentage point to 7.2 per cent. In addition, the perceptions of
year-ahead change in the price of food edged up 0.1 percentage point to 5.2 per
cent (the highest level since May 2024). At the same time, the expectations for
year-ahead change in the price for gas decreased by 0.5 percentage points to 3.2
per cent and those for the cost of a college degree dropped by 0.2 percentage
point to 6.7 per cent.
Elsewhere, home price growth expectations fell by 0.3 percentage point to 3.0 per cent.
The report also revealed that the
three-year-ahead inflation expectations were unchanged at 3.0 per cent in March, and the five-year-ahead
inflation expectations slipped to 2.9 per cent from 3.0 per cent in the previous month.