US December One-Year Inflation Expectation Rises to 4.2%

Short-term US inflation expectations for December 2023 slightly surpassed forecasts and prior readings, while longer-term projections remained unchanged at 3.2%.

84d ago

Summary

The final reading for US one-year inflation expectations in December came in at 4.2%, above both the forecast and the previous level of 4.1%. In contrast, the five-to-ten-year expectation remained steady at 3.2%, matching both the forecast and the prior figure.

Terms & Concepts

Inflation Expectation: A measure of the rate at which consumers, investors, and policymakers anticipate prices will rise over a specific future period.
Five-to-Ten-Year Inflation Expectation: An estimate of average annual price increases over the next five to ten years, often used to gauge long-term economic stability.