Americans continue to anticipate that inflation will remain elevated, with the University of Michigan’s five-year expectations holding steady at 3 percent for the fifth consecutive month, even though the Federal Reserve’s preferred inflation gauge is showing signs of cooling.
The latest data from the University of Michigan, released on Aug. 30, shows that inflation expectations over a five-year horizon have come in at an even 3.0 percent in July for the fifth month in a row, a reading that is substantially above the Fed’s 2 percent target and that underscores the view that longterm inflationary pressures will stick around for years to come.
