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The Fed is losing control!

Consumer inflation expectations at record high

Despite multiple attempts by US policymakers to convince Americans otherwise, consumers' concerns over the spectre of inflation are at an all-time-high.

Consumer expectations for inflation for one year ahead, as per the September survey, are now at their highest point ever of 5.31%. It represents an increase from 5.18% recorded in August.

"Median short-term (one-year-ahead) inflation expectations increased by 0.1 percentage point in September to 5.3%, the eleventh consecutive monthly increase and a new series high since the inception of the survey in 2013" the NY Fed said, having convinced the public repeatedly that inflation was a transitory phenomenon.

The data also revealed that an astonishing 25% of respondents believe that inflation could reach double digits in a year’s time.

Americans are of the view, according to the Fed’s survey, that price rises will be across the board, from rent to food and more.

Gas prices are expected to rise by 5.9%, in line with surging oil prices. Consumers expect the cost of food to jump 7%, while rent is expected to rise by 9.7%. College educations, gold and medical care are all also expected to see big increases.

Looking over a three-year period, consumers reckon prices will rise by 4.19%, up from 4%, a clear sign that the American public feels the notion of transitory inflation is far from the truth.

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