Inflation is now expected at a faster rate in the short term before slowing down in the medium term.
Source: New York Fed
QQQ is down 1.85%, while SPY is down 1.21%.
Results of the March Survey of Consumer Expectations reveal that inflation is expected to hit 6.6% in the coming year, marking a fresh series high. This compares with February’s 6.0%.
Home price growth for the coming year is expected at 6.0%, up from 5.7% previously. Increases were also seen in expectations for gas and food prices, while rent and medical care were flat. Declines were seen in college education costs.
The one-year-ahead expected earnings growth median was unchanged at 3.0% for the third straight month, with more respondents expecting unemployment to increase in the coming year.
Inflation is expected to decelerate in the three-year ahead period, with respondents predicting it at 3.7% versus the 3.8% recorded in the previous month. This was driven mainly by respondents with no college education and with less than $50,000 annual household incomes.