Inflation rate is rising in America - Economist

According to a survey conducted in the central bank state of New York, the June survey of consumer expectations showed that average inflation expectations over the next 12 months jumped to 4.8%, an increase of 0.8% from May and the highest reading in history for a series going back to 2013.

Despite the Federal Reserve's assurance that the current inflationary pressures will not last, consumers see things differently, as there is a clear rise in consumer prices with the continuing effects of the Corona pandemic on the American and global economy.

Forecasts for the next three years of inflation remained unchanged at 3.6%, well above the 2% level that the Federal Reserve considers healthy for a growing economy.

Central bank officials insist the recent inflation rally will not continue, as they predicted at their June meeting that their preferred measure would show gains of 3% in 2021 but then decline to 2.1% in subsequent years and settle around the target range thereafter.

In the same vein, a report from the Federal Reserve on Friday that Chairman Jerome Powell will present to Congress this week confirmed the central bank's position that the current inflationary pressures are "temporary" and largely as a result of supply chain bottlenecks and other factors that are likely to abate with Return of the economy to normal life.