Americans expect the goods to become very expensive.
why it matters: Even though inflation may not actually rise to the expected level, only expectations can influence behavior.
- “Some research shows that consumers tend to hold back from spending when they expect high inflation,” said Julia Coronado, founder of Macropolicy Perspectives. said.
By numbers: According to the New York Fed’s Aug. consumer expectations surveyThe respondents saw the inflation rate rising to 5.2% per annum from now on, up from 4.9% in the previous month’s survey.
- Three years from now, the inflation rate is expected to be 4.0%, up from 3.7% last month.
- Both figures represent the highest readings since the survey began in 2013.
state of play: business anecdote Continue to reaffirm that inflation remains a challenge.
- “Unfortunately, inflation is higher than we thought in the third quarter,” says 3M CFO Manish Patolawala said at the Morgan Stanley conference on Monday. “Despite raising the price … we are seeing inflation ahead of price.”
what to watch: The August Consumer Price Index report, which will be published today at 8:30 am, will give a fresh update on what inflation looks like today.