Inflation is at the highest level in nearly 40 years. Consumers don’t expect inflation to get much better in 2022.
Currently, the U.S. annual inflation rate hovers at 6.8%, measured by the Consumer Price Index. In a year from now, consumers predict it will be closer to 6%, according to the December New York Fed Survey of Consumer Expectations published Monday.
That’s the same level of inflation consumers predicted in November, and it was the only month last year where consumers didn’t predict a higher level of inflation compared to the prior month.
But consumers’ predictions don’t always come true. At the start of last year, consumers were only expecting modest levels of inflation — around 3% — for the start of 2022.
What’s more, a fresh reading on CPI inflation is due on Wednesday. Few economists are on board with the Fed’s forecast that the rate of inflation…