Consumer worries about inflation hit record high in May – Footwear News
Consumers were more concerned about rising inflationary pressures in May, according to new figures released Monday by the Center for Microeconomic Data at the Federal Reserve Bank of New York.
Median inflation expectations for the year ahead rose from 6.3% to 6.6% in May, up 0.3% from April, the New York Fed said. This is the highest survey rate recorded since June 2013, tied with March.
The record high expectations come in the same month that consumer prices rose 8.6% from a year ago, according to the monthly report from the Bureau of Labor Statistics. The number was up from 8.3% growth in April and 8.5% growth in March and represented the largest 12-month increase since the period ending in December 1981.
At the same time, inflation expectations for the next three years remained unchanged at 3.9%. Median short-term inflation uncertainty has fallen slightly from a high series in April. Over the medium term, inflation uncertainty hit a new serial high.
As for house prices, expectations have fallen to 5.8% from 6.0% in April, but remain high compared to pre-pandemic levels. Gas price forecasts rose slightly to 5.5%. The expected change in food, medical care and rent fell 0.1 percentage point to 9.3%, 9.4% and 10.2%, respectively.
In response to the latest consumer price report, industry leaders called on the Biden administration to take action to mitigate inflation by repealing tariffs on goods from China.
“This report showing that runaway inflation is continuing is all the more reason for the administration to act quickly to repeal the tariffs,” said Matthew Shay, president and CEO of the National Retail Federation. “As the Federal Reserve pursues its long-term strategy to stem inflation, we need action from the administration and Congress to lower prices that can be taken immediately. The repeal of tariffs is the one of these steps and one of the most effective and meaningful.