US NY Fed Survey Shows Inflation Expectations Remain Low in October

A measure of U.S. inflation expectations held mostly steady at low levels in October, with only some momentum higher, according to a Federal Reserve Bank of New York survey taken before Americans voted in this month’s presidential election.

The survey of consumer expectations, an increasingly influential gauge of prices for the U.S. central bank, found that inflation is expected to be identical one and three years into the future, according to the median.

It found that year-ahead inflation expectations edged up to 2.6 percent last month. That is up from 2.5 percent in September, which was the survey’s lowest recorded level.

Three-year ahead expectations were flat at 2.6 percent, near a record low for the online survey that has shown a gradual decline in both price measures since it began in mid-2013.

Since Republican Donald Trump was elected U.S. president last week, market-based inflation expectations have risen sharply. The Fed is looking for evidence of inflation as it contemplates another interest rate hike, as soon as December.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.