US inflation expectations remain flat, NY Fed survey finds

[NEW YORK] Falling oil prices and a stronger US dollar did not dampen Americans' inflation expectations last month, according to a Federal Reserve Bank of New York survey that also found a jump in expected earnings growth.

Median expectations of inflation one and three years into the future have remained steady at 3.0 per cent since August, even while one-year-ahead gasoline price predictions fell for a fourth straight month, according to the New York Fed's relatively new survey of consumer expectations.

The internet-based survey, which started midway through last year, saw median earnings growth expectations jump to its highest recorded level at 2.7 per cent in November.

A global drop in energy prices and a stronger dollar has put pressure on overall US inflation, which remains below the central bank's 2 per cent target. Fed policymakers are not expected to raise interest rates from near zero until about the middle of next year.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes