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US consumers expect current inflation to get worse, says survey

US consumers expect the current inflation to get worse, according to the Federal Reserve Bank of New York. 

The latest monthly survey of consumer expectations by the bank in October shows the short-term and medium-term median inflation uncertainty have both risen, reaching a new high in October and breaking records for 12 months in a row. 

Median inflation expectations increased to 5.7 percent at the one-year horizon, reaching a new series high since June 2013, and median inflation expectations at the three-year horizon stayed the same at 4.2 percent, according to the survey. 

In the next 12 months, costs for food, gas, housing, and education are all expected to rise. 

On the same day, the Vice Chair of the Federal Reserve Richard Clarida said that the current inflation in the United States is higher than expected and that of the whole year will exceed the most recent prediction of the Fed. If the current trend continues, he would consider it a policy failure. 

Fed Chair Jerome Powell attributed the sharp rise of consumer product prices to the supply chains disrupted by the Covid-19 pandemic and the rise of wage from shortage of workers.

(Source: Reuters) 

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