Americans think the economy will maintain a 3% inflation rate, per the latest Survey of Consumer Expectations from the New York Fed.
by Elizabeth Trovall
Market Place
Business owners, analysts and economists are all trying to make sense of the current shift in U.S. economic policy — we’ve heard a lot of them on “Marketplace.” But consumers are also trying to digest the changing policy landscape and how it will affect the job market, spending and even the price of eggs.
We got a glimpse of what American consumers are thinking with January’s Survey of Consumer Expectations by the New York Federal Reserve Bank, which includes consumer data taken throughout the month. Last month, consumers held on to their belief that inflation isn’t getting any better — or any worse.
“The consumers are dug in, so, you know, inflation expectations are now kind of maintaining around 3%. That’s a percent higher than the Fed’s target of 2%,” said Rice University’s Zach Bethune.
Consumers are expecting commodity prices to increase.