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U.Mich Long-Term Expectations Highest Since 2008, Then 1994

US
  • The 30bp rise in the 5-10Y inflation expectations to 3.3% is a big surprise, having seemingly peaked at 3.1% in January and held steady at 3.0% through the Ukraine war.
  • It was last higher when it touched 3.4% for two months in mid-2008 and prior to that is the highest since 1994.
  • Shown with NY Fed 3Y Ahead consumer measure (yellow) and 5Y5Y breakeven (green)

Source: Bloomberg

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