Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
U.S. households’ expectations for the near-term future path of inflation surged back to record levels in May to 6.6% from 6.3% in April, according to the latest New York Fed survey, while expectations at the three-year horizon were unchanged at 3.9%.
The survey also shows household spending expectations over the next year rose to a new series high 9.0% from 8.0% in April, the fifth straight gain. Median expected growth in household income decreased 0.1ppt to 3.0% and the average perceived probability of missing a minimum debt payment over the next three months increased 0.4ppts to 11.1%.
Fed officials are eyeing longer-term inflation expectations for signs of a sustained rise. Richmond Fed President Tom Barkin told MNI last month he would not rule out a 75 bp rate hike if expectations looked to be getting out of hand. The median year-ahead expectation for home prices declined to 5.8% from 6.0% in April, while the expected change in the price of food, medical care and rent all fell 0.1ppt to 9.3%, 9.4% and 10.2%. The expected change in the price of gas rose slightly to 5.5% in May.
Source: New York Fed
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.