Public expectations for the level of inflation a year from now hit a record in March.
- The New York Fed stated that respondents expect inflation to reach 6.6% in March 2023, increasing from the 6% they initially expected in February.
- Meanwhile, the New York Fed also reported that public expectations for inflation three years from now, in March 2025, average 3.7% from February’s 3.8% outlook.
- The report also indicated the uncertainty over short-term inflation levels hit a new high, and longer-term uncertainty inflation remained at high levels.
The Fed is concerned about the public’s expectations because it expects price pressures to drive changes in inflation.
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Source: Federal Reserve Bank of New York