US short-term inflation expectations rise

In the US, consumers' short-term inflation expectations rose to 3.3 percent in April, the highest level since November 2023. The US Federal Reserve (Fed) New York Branch published the results of the Survey of Consumer Expectations for April. According to the results of the survey conducted with the participation of approximately 1,300 households, the median short-term inflation expectation covering the next 12 months increased by 0.3 points to 3.3 percent in April. Thus, consumers' short-term inflation expectations reached the highest level since November 2023. While the median inflation expectation covering the next 3-year period decreased from 2.9 percent to 2.8 percent in the same period, the median inflation expectation covering the next 5-year period increased from 2.6 percent to 2.8 percent. Expectations for an increase in household spending increased by 0.2 points to 5.2 percent in April, while expectations for an increase in household income decreased by 0.1 points to 3 percent. During this period, expectations for an increase in costs rose to 4.8 percent for gasoline, 5.3 percent for food, 8.7 percent for health care, 9 percent for college education and 9.1 percent for rent. April inflation in the US will be announced on Wednesday The US Consumer Price Index (CPI) increased by 0.4 percent monthly and 3.5 percent annually in March. Market expectations for April inflation in the country, to be announced on Wednesday, are for 0.4 percent monthly and 3.4 percent annually.