[NEW YORK] US inflation expectations ticked up last month, according to a Federal Reserve survey in which Americans predicted prices to rise by 3 per cent over the next year.
The New York Fed's survey of consumer expectations, released on Monday, showed one-year ahead expectations rose from 2.7 per cent a month earlier to its highest level so far this year. The three-year ahead measure was also 3 per cent in May, unchanged from April.
The central bank is looking to raise interest rates later this year but wants to be sure that actual price inflation, which remains low, will rebound to its 2 per cent target. The May jobs report showed a jump in wages.
The survey taps about 1,200 respondents on a 12-month rotating basis.