Measures of U.S. inflation rebounded slightly last month
Measures of U.S. inflation rebounded slightly last month, according to a Federal Reserve Bank of New York survey released on Monday that also showed a sharp drop in Americans’ spending expectations.
The survey of consumer expectations, one of several gauges of prices for the U.S. central bank, showed median inflation expectations for one year ahead edged up to 2.8 percent in April, from 2.7 percent in March. The three-year measure was 2.9 percent, compared to 2.7 percent a month earlier.
The bump, which the New York Fed said was driven by those with lower income and education, keeps the price measures roughly in a range since late last year.
The central bank has raised interest rates twice since December in large part on expectations that inflation will keep edging higher.
The survey also showed median household spending growth expectations dropped to 2.6 percent last month, from 3.3 percent in March. It was the lowest level since the New York Fed began measuring in mid-2013.
The internet-based survey is done by a third party and taps a rotating panel of 1,200 household heads.