Inflation Expectations Jump With Iran War, Fed Survey Finds

Near-term inflation expectations jumped in March by the most in a year as consumers anticipated higher gas and food prices with the onset of war in the Middle East, according to a Federal Reserve Bank of New York survey released Tuesday.

US consumers said they expected an inflation rate of 3.4% over the next 12 months, up 0.4 percentage points from February, according to the median response in the New York Fed’s monthly Survey of Consumer Expectations. The outlook for inflation in three years rose slightly to 3.1%, and expected inflation in five years remained unchanged at 3%.