New York Fed: "Short-term inflation expectations rise… medium- to long-term outlook remains stable"

According to Walter Bloomberg, an economic newsflash channel, on the 8th (local time), the Federal Reserve Bank of New York (New York Fed) said consumers’ short-term inflation expectations edged up, while medium- to long-term inflation expectations were unchanged.

The New York Fed said one-year-ahead expected inflation as of December came in at 3.4%. That marks a 0.2%-point increase from 3.2% in November.

By contrast, medium- and long-term inflation expectations held steady. Three-year-ahead expected inflation was unchanged from the previous month at 3.0%, and five-year-ahead expected inflation also stayed flat at 3.0%.

Markets are interpreting the data as a signal that concerns over near-term price pressures have risen somewhat, but confidence in longer-term price stability remains intact.