U.S. consumers expect short-term inflation to go up along with a drop in future earnings in November, implying a worsening economic outlook with higher prices surpassing any growth in wages, according to a New York Federal Reserve survey released on Monday.
The Survey of Consumer Expectations, taken from a pool of 1,300 household heads, show median one-year-ahead inflation expectations rise from 5.7 in October to 6.0 percent, while uncertainty regarding short- and medium-term inflation reach new series high. Meanwhile, expectations regarding one-year-ahead earnings growth went down by 0.2 percentage points to 2.8 percent. The decline was highest among low income households (below $50,000).
