The latest monthly survey from the NY Fed showed Americans’ inflation expectations for the coming year have hit a new all-time high.
When prices go up, it can feed expectations that they’ll continue to climb and lead to a more dour outlook about the health of personal finances.
That cycle was on display on Monday in the Federal Reserve Bank of New York’s latest monthly Survey of Consumer Expectations that showed Americans’ median inflation expectations for the coming year have hit an all-time high, while their perceptions about current and near-term households finances are worsening.
Shortages of raw materials and supply bottlenecks have fed inflation this year as economies around the world rebound from last year’s pandemic blow.
In the United States, consumers are shelling out more for most items, including essentials like food, rent, and petrol, as well as for big-ticket items like cars.
The New York Fed survey found that…