People surveyed in the New York Fed survey on consumer expectations are consistent with US monetary policy makers who see prices as stable next to their annual target of 2 percent.
While a three-year inflation rate was 0.1 percentage points to 2.9%, a survey showed a year before inflation expectations remained unchanged at 2.8% last month.
Expectations about the cost of food, health care, college education and rent were slightly altered.
Former Federation officials raised their target rate in December at 2.25 to 2.50%, but signaled after that point that they would be “patient” before deciding on future moves.
The Fed is also conducting a broad policy review that could result in a good central bank inflation that is little and temporary over its target. Some policymakers and analysts believe the Fed now has far more capabilities to respond to rising price increases than ever-lowering readings. This is because the interest rate change has less impact on the economy when rates fall to zero.
Many policy makers are also looking forward to rising wages, instead of assuming that they will force businesses to raise prices.
The online survey touches on a rotating panel of 1,300 families./Investing.com