New Measure of Inflation Expectations Jumps to Record High as Americans Brace for Even Higher Prices

A woman shops for groceries at a supermarket in Monterey Park, Calif., on Oct. 19, 2022. Frederic J. Brown/AFP via Getty Images

A weekly measure of inflation launched in February last year has surged to a record high, and is predicting a tougher inflationary environment for American consumers ahead.

The Indirect Consumer Inflation Expectations (ICIE) is a joint effort between economists from the Federal Reserve Bank of Cleveland and Morning Consult. It asks survey participants how their incomes will have to change to ensure that they are equally well off over the next 12 months, measuring their inflation expectations for the period. In an interview with The Washington Post, John Leer, chief economist at Morning Consult, said that ICIE hit its highest-ever level of 8.25 percent for the week ended Nov. 12.