One of the biggest concerns for the Fed as they decide whether or not to raise interest rates this year is expected inflation. While prices and wages have been pretty stable over the last few years, if consumers and investors think the inflation rate will rise in the near future, the Fed might consider raising interest rates in response.
One of the questions on the New York Fed's Survey of Consumer Expectations asks respondents what they think inflation will look like in the near future.
The median consumer's expected one-year ahead inflation rate dropped throughout the summer before hitting a low of just 2.73% in September. In October, expected inflation rebounded to 2.82%, higher than in both August and September.
