US 1-Year Expected Inflation Median at 6.6%...Record High

by Cho Seulkina

Published 12 Apr.2022 04:35(KST)

[Asia Economy New York=Special Correspondent Joselgina] According to Bloomberg News on the 11th (local time), the level of inflation expected by U.S. consumers has once again hit an all-time high.

On this day, the New York Federal Reserve Bank (New York Fed) announced that the median expected inflation rate for the next year, based on last month's survey, was 6.6%. This is a 10% increase from 6.0% the previous month and marks the highest level since the New York Fed began the related survey in 2013.

Consumers were particularly concerned about the sharp rise in housing costs and grocery prices.

Housing rent, which accounts for one-third of the U.S. Consumer Price Index (CPI), is expected to soar by 10.2% over the next year. Grocery prices are also projected to increase by 9.6%.

However, the 3-year expected inflation rate was recorded at 3.7%, down 0.1 percentage points from the previous month. This decline was mainly due to households with annual incomes below $50,000 lowering their long-term inflation outlook.

This announcement came a day before the release of the U.S. March CPI. The market expects the March CPI to surge by 8.4% compared to the same month last year.

White House Press Secretary Jen Psaki said at a briefing that "the previous report (February CPI) did not fully reflect most of the sharp rise in oil and gas prices caused by Russia's unjust invasion," adding, "March inflation is expected to be extremely high."