According to a survey conducted by the Federal Reserve Bank of New York and released on Monday, consumers' predictions for price increases in the upcoming year were higher in April compared to March. One-year inflation expectations rose to 3.3%, the highest level since November, while expectations for income growth declined slightly from 2.8% to 2.7%.
The findings reflect the sentiment survey conducted by the University of Michigan, which was published on Friday. According to the survey, the projected outlook for May increased by 0.3 percentage points to 3.5% for the one-year timeframe, while the five-year outlook slightly rose to 3.1%.
All the measurements indicate a significant deviation from the Federal Reserve's target of 2% and reveal the persistent and resistant nature of inflation this year, following a notable trend of disinflation in 2023.
According to the New York Fed survey, consumers anticipate greater price hikes in various categories, including housing, healthcare, education, food, gasoline, and rent, compared to their expectations in March.
Expectations for growth in home prices increased from 3% to 3.3%, reaching the highest level since July 2022. In recent months, home prices have reached unprecedented levels due to the impact of elevated mortgage rates, which have resulted in fewer homeowners putting their properties on the market. This has led to limited housing supply and intense competition among buyers.
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