US inflation expectations remain flat, NY Fed survey finds

08 Dec, 2014

NEW YORK: Falling oil prices and a stronger U.S. 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 percent 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 percent in November.

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

Copyright Reuters, 2014

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