Where do you think inflation is headed? The New York branch of the Federal Reserve recently decided to ask normal individuals, rather than trained economists, that question. It turns out that regular investors see inflation as a problem, but not a major one. The consensus was that inflation would peak next year at about 3 percent.
That’s not high enough to be a problem, although it is higher than inflation has been running recently. The personal consumption expenditures price index, which is the preferred measure of the Fed, was measured at just over 1 percent in December. The Fed’s target for inflation is 2 percent.
Those same respondents expected their personal earnings to grow by 2.4 percent over the coming year - outpacing the real inflation we've been experiencing, but not their projected inflation. They also think that finding a new job is getting easier, with 49 percent saying they’d be able to find a new job within three months, up from 46 percent who said that last December.
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