Fed Sur­vey: Con­sumers See Food Prices De­clin­ing

The Bond Buyer - - Market News - — Gary E. Siegel

Con­sumers’ in­fla­tion ex­pec­ta­tions held for three-year, but rose for the one-year hori­zon, ac­cord­ing to the Oc­to­ber Sur­vey of Con­sumer Ex­pec­ta­tions, re­leased by the Fed­eral Re­serve Bank of New York on Mon­day.

“While in­fla­tion ex­pec­ta­tions were rel­a­tively sta­ble, year-ahead ex­pec­ta­tions of food price changes reached their low­est value since the start of our sur­vey in June 2013,” the sur­vey noted.

Me­dian in­fla­tion ex­pec­ta­tions grew to 2.6% in Oc­to­ber from 2.5% in Septem­ber for a one-year pe­riod and held at 2.8% for a three-year hori­zon. Turn­ing to la­bor, the ex­pected earn­ings growth for one-year slid to 2.1% from 2.3%.

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