Build Back Pricier: Business Inflation Expectations Stuck at Record High

Breitbart

A key signal of future inflation has settled in at a highly elevated rate, a development that should jolt the Federal Reserve out of its confidence that the recent inflation surge will fade soon.

A survey of business conducted by the Federal Reserve Bank of Atlanta found that the median expectation for inflation 12 months from now remained at 3.1 percent for the second straight month. That is the highest reading detected in the nearly 10-year-old survey.

It is well above the two percent inflation rate that the Fed says it targeting. Last year, the Fed changed its approach after years of consistently undershooting the target. Now the Fed says it hopes to achieve an average of two percent over time, an indication that it will allow inflation to run over the target for some time to balance out the earlier bouts of low inflation.

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