Concerns about inflation are rising, new data from the Federal Reserve show record fears of rising prices.
According to a March survey by the New York Fed, which was published on Monday, consumers now see that inflation will reach 6.6% next year. This is a 10% increase over the median expected last month and the highest level in the series since 2013.
The survey showed that the median expectations over the three-year period actually fell by 0.1 percentage point to 3.7%, mainly due to the declining outlook for those with annual household incomes below $ 50,000.
However, uncertainty about one- and three-year inflation seems to be at a record high. Expenditures on household spending rose sharply, rising 1.3 percentage points to 7.7%, which is also the new serial maximum.
The data comes the day before the release of the consumer price index in March, which Dow Jones estimates should show prices for the last 12 months at 8.4%. If this forecast is correct, it will be the fastest increase since December 1981.
As part of the fight against inflation, the Fed approved its first rate hike in more than three years last month and is expected to continue throughout the year, as price increases exceed the central bank's long-term target of 2%.
Consumers recorded the fastest increase in hair (10.2%), which represents almost a third of the CPI. Medical care, food and fuel are expected to grow at a rate of 9.6%. The outlook for university costs fell by 0.5 percentage point to 8.5%.
Expected wage growth remains stable at 3%, while 36.2% say it expects unemployment to rise next year, the highest level since February 2021. Unemployment is currently at 3.6%, more than in the Covid pandemic . Labor participation remained 1 percentage point low.
Concerns about job security rose slightly, with the chance of losing a job next year at 11.1%, a gain of 0.3% even below 13.8% ahead of the level. -pandemic.