Americans’ expectations of future inflation rose to a record high last month, potentially challenging the central bank’s belief that inflationary pressures will ease over time, according to a new report from the Federal Reserve Bank of New York. .
In its August survey of consumer expectations, the bank said on Monday that respondents saw inflation in one year at 5.2%, up from expectations of 4.9% last month. Three years from now, it is expected to rise to 4% from the expected 3.7 percent in July. Both readings mark record-high readings for data going back to 2013.