Is higher inflation on the horizon? A key measure of U.S. inflation expectations rose for a second straight month in January to its highest level since mid-2015, according to a Federal Reserve Bank of New York survey released yesterday.
The survey of consumer expectations, an increasingly influential gauge of prices for the U.S. central bank, found that year-ahead inflation expectations had increased to 3.0 percent. The same figure was at 2.8 percent in December and 2.5 percent in November.
The inflation expectation for three years out was 2.9 percent, up from 2.8 percent the month before. Both measures were last this high in June of 2015. The survey, which started three and a half years ago, hit its lowest forecast levels last year.