U.S. inflation expectations dip after run-up: NY Fed survey
Reuters
Published Feb 12, 2018 11:08AM ET
U.S. inflation expectations dip after run-up: NY Fed survey
NEW YORK (Reuters) - U.S. inflation expectations edged lower last month, dulling a year-end rise, according to a Federal Reserve Bank of New York survey published on Monday as financial markets looked to such price measures for direction after a choppy trading week.
The survey of consumer expectations, which the Fed considers among other data as it continues to gradually raise interest rates, showed median one-year ahead inflation expectations dipped to 2.71 percent in January, from 2.82 percent the previous month.
The three-year reading was 2.79 percent in January, down from 2.89 percent, a decline the New York said was driven by lower-income respondents. In December, both price readings had jumped to their highest levels in months.
Government data showing a strong rise in U.S. wage growth in January prompted, last week, the worst stocks selloff in two years. Investors said the volatile drop was due to worries that a pick-up in U.S. inflation would force the central bank to raise rates quicker than expected.
The Fed raised rates three times last year even as inflation dipped. With signs that prices may be turning around, the Fed is expected to hike again in March. The key U.S. CPI inflation reading for January is set to be published on Wednesday.
The New York Fed survey, in which a third party taps a rotating panel of about 1,200 household heads, also found less uncertainty about inflation expectations.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.