Americans' short-term inflation expectations rise in March

By Ovunc Kutlu

ISTANBUL (AA) - American consumers' short-term inflation expectations rose in March, according to a survey released Monday by the Federal Reserve Bank of New York.

The median three-year ahead inflation expectations rose to 2.9% from 2.7% in February.

However, the five-year ahead inflation expectations decreased to 2.6% from 2.9%, while the one-year median inflation expectations remained unchanged at 3% for the third consecutive month.

"Median home price growth expectations remained unchanged for the sixth consecutive month at 3.0%," the New York Fed said in a statement.

"Median one-year-ahead expected earnings growth was unchanged at 2.8% for the second consecutive month," it added.

The median year-ahead expected price changes increased for all goods in the survey -- by 0.2 percentage point for gasoline and food to 4.5% and 5.1%, respectively; 1.3 percentage points for the cost of medical care to 8.1%; 2.6 percentage points for rent to 8.7%; and 0.7 percentage point for the cost of a college education to 6.5%.