U.S. inflation expectations increased in February, with the one-year measure rising to a one-year high, the latest survey from the Federal Reserve Bank of New York showed.
The bank's Survey of Consumer Expectations showed median inflation expectations rising to 2.83% from 2.71% in the earlier month, hitting its highest level since February 2017, Reuters reported. The three-year measure for inflation expectations edged up to 2.88% in February from 2.79% in January.
Median inflation uncertainty declined to series' lows for both measures.
The U.S. Federal Reserve, which raised its rates three times in 2017, is expected to hike the rates again next week as prices and employment continue to rise.
About 313,000 jobs were added to the U.S. labor market in February, according to the U.S. Labor Department, while the unadjusted annual consumer price index rose by 2.1% in January, surprising markets on the high side.
Meanwhile, the NY Fed survey showed mean unemployment expectations edging down to 32.3% from 32.4% in January, while median earnings growth expectations in one year remained flat at 2.7% in February.
Median household income growth expectations inched up to 3.0% in February from 2.8% in the previous month, with expectations about financial situations reaching its highest level since the inception of the survey in June 2013.
