Americans grew more concerned about near-term inflation pressures in June, according to a Federal Reserve Bank of New York report. Inflation a year from now was seen at 3.7% in June, up from 3.5% in May, for the highest reading since September 2023.
Inflation Expectations
The rise in near-term inflation expectations comes as prevailing inflation readings have been under considerable pressure from a surge in energy prices due to the Middle East war. The overall May personal consumption expenditures price index was up by 4.1% in May from the same month a year ago, from April’s 3.8% gain.
New York Fed President John Williams said, ‘inflation is still too high,’ while adding ‘I do feel a little bit more positive about the near-term inflation outlook because of the energy price declines that we’re going to see.’ The Fed left its interest rate target range unchanged at the June policy meeting at between 3.5% and 3.75%.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
