US one-year inflation expectations rise to highest level since November 2023

The University of Michigan Consumer Survey reported that US one-year inflation expectations rose sharply to 4.3 per cent in February from 3.3 per cent last month, reaching the highest level since November 2023, according to Golden Ten. This was the second consecutive month of unusually large increases and the fifth time in 14 years that a single month has seen a rise of more than one percentage point.

The figure was significantly above the normal pre-epidemic range of 2.3-3.0 per cent. Meanwhile, longer-term inflation expectations rose slightly to 3.3 per cent from 3.2 per cent in the previous month, again above the preepidemic normal of 2.2-2.6 per cent.