Iran Press/ America: According to Aljazeera,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 worldwide 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 median inflation expectations at the one-year horizon increased to 5.7 percent in October – marking a 0.4 percentage point jump from the previous month and a series high for records dating back to June 2013.
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Furthermore, the October bump was also the 12th consecutive monthly increase and was most pronounced among respondents who have at least a college degree and for people between the ages of 40 and 60.
Expectations for higher prices in the year ahead covered all of the commodities considered in the survey, except medical care.
Americans are bracing for steeper rents, with the median expected change in the cost of rent increasing by 0.4 percentage points to 10.1 percent in October- a new series high.
Pain at the pumps is also anticipated, with the one-year expected change in the cost of petrol rebounding to 9.4 percent in October from 5.9 percent the month before.
Higher college and food costs are seen in the year ahead, with the median expectation for prices there jumping by 1.5 and 2.1 percentage points respectively to 7.4 percent and 9.1 percent in October.
For its part, the Federal Reserve continues to insist that inflation will prove to be transitory, and eventually, price pressures will ease. Last week, Fed Chairman Jerome Powell said he also sees no signs of a “wage-price” spiral taking hold, in which workers keep demanding raises to keep up with higher prices – setting off a vicious cycle.
The latest snapshot of the US labor market showed that average hourly wages jumped 4.9 percent in October from the same period a year ago.
On Wednesday, the US Department of Labor will release October’s read on consumer price inflation.
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