By Michael S. Derby <\/p>\n
July 7 (Reuters) – Americans grew more concerned about near-term inflation pressures in June even as they projected moderating gasoline price gains and a more upbeat view on current and future personal \u200cfinances, a Federal Reserve Bank of New York report released on Tuesday said. <\/p>\n
Inflation a year from now was \u200cseen at 3.7% in June, up from 3.5% in May, for the highest reading since September 2023, the bank said in its latest Survey of \u200bConsumer Expectations. <\/p>\n
Meanwhile inflation three years from now was seen at 3.3% from May’s 3.1%, with the June reading at its highest level since June 2022. Five-year ahead expected inflation, which is most closely watched by central bank officials, held steady at 3%. <\/p>\n
The rise in near-term inflation expectations comes as prevailing inflation readings have been under considerable pressure from a surge in energy prices due \u200cto the Middle East war. The overall \u2060May personal consumption expenditures price index was up by 4.1% in May from the same month a year ago, from April’s 3.8% gain. <\/p>\n
The conflict snared the transit of critical energy products and \u2060other goods and drove sharp increases in prices for things like gasoline and diesel, which came on top of inflation pressures that had already been overshooting the Fed’s 2% inflation target. <\/p>\n
The hot phase of that conflict appears to be now over and energy prices \u200bhave \u200bretreated, in turn suggesting future price pressures will moderate. In a \u200btelevision interview earlier on Tuesday, New York Fed President \u200cJohn Williams said, “inflation is still too high,” while adding “I do feel a little bit more positive about the near-term inflation outlook because of the energy price declines that we’re going to see.” <\/p>\n
Fed officials closely track inflation expectations because most agree where the public thinks price pressures will go strongly influences where price pressures currently stand. They largely agree that the public eventually expects price pressure to return to target due to the stability of longer-term expectations readings. <\/p>\n
In his first press conference \u200cas Fed Chairman, Kevin Warsh said last month that “I am pleased to \u200breport that members of the [Federal Open Market Committee] are unambiguous and unanimous: \u200bThis Committee will deliver price stability.” <\/p>\n
The Fed left its \u200binterest rate target range unchanged at the June policy meeting at between 3.5% and 3.75%, \u200calthough a number of central bankers then eyed the \u200bneed for rate hikes later \u200bthis year given inflation worries. <\/p>\n
The New York Fed survey found that although the near-term expected path for inflation has moderated, the public was less worried about gasoline prices, which in June moderated to a level last seen \u200bin August 2022. <\/p>\n
The report also found that \u200cthe public in June had upgraded their views on the labor market and were more upbeat about the \u200bcurrent and future state of their personal finances. That said, views on current and future credit access \u200bwere mixed. <\/p>\n
(Reporting by Michael S. Derby; Editing by Andrea Ricci) <\/p>\n","protected":false},"excerpt":{"rendered":"By Michael S. Derby July 7 (Reuters) – Americans grew more concerned about near-term inflation pressures in June…\n","protected":false},"author":2,"featured_media":749541,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,89179,66025,97941,81621,45116,89456,69913,297772,136083],"class_list":["post-749540","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-energy-prices","tag-expected-inflation","tag-gasoline-prices","tag-inflation-expectations","tag-inflation-pressures","tag-new-york-fed","tag-personal-consumption-expenditures-price-index","tag-price-pressure","tag-price-pressures"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/749540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=749540"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/749540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/749541"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=749540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=749540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=749540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}