Americans are expecting a record deluge of inflation over the next year—and they expect high levels of inflation to stick around for years, according to a report released Monday by the Federal Reserve Bank of New York.
At the same time, expectations for future earnings growth declined, raising the prospect of stagflation.
The N.Y. Fed’s August Survey of Consumer Expectations found that the one-year-ahead inflation expectations jumped by three-tenths of a percentage point to 5.2 percent, the tenth consecutive monthly increase and the highest reading ever produced in data going back to 2013.
The median inflation expectations for three years from now also climbed three-tenths of a percentage point to a new series high of 4.0 percent.
The Fed said both increases were broad based across age and income groups.
Food: inflation expectations rose eight-tenths of a percentage point for food to 7.9 percent;