MNI BRIEF: NY Fed: 1-Yr Inflation Expectations Jump to 5.7%

The New York Fed's median measure of one-year-ahead consumer inflation expectations rose 0.4 ppts to 5.7% in October, the twelfth straight month of gains to the highest level since the inception of the survey in 2013.

Median inflation expectations three years out remained unchanged at an also series high at 4.2%, the New York Fed said. The increase in the year-ahead measure was driven by respondents who have at least a college degree and those between the ages 40 and 60, while measures of disagreement across respondents reached new series' highs at both year-ahead and three-year-ahead horizons, the Survey of Consumer Expectations showed.

The survey also showed consumers expected increases in commodities, gas, and food prices. The median expected change in the cost of rent increased 0.4 ppts to 10.1%, a new series high. The survey also showed improved households' labor market expectations, and median spending growth expectations rose 0.4 ppts to 5.4%, a new series high.