US Consumer Inflation Expectations Rise as Job Prospects Improve

US consumer inflation expectations rose in July and perceptions of the job market improved, according to a monthly Federal Reserve Bank of New York survey.

Expected inflation for the year ahead ticked up to 3.1%, from 3% in June, the New York Fed said Thursday. Expected inflation three years ahead held steady at 3%, while the estimate for five years ahead jumped to 2.9%, the highest since February.

Rising inflation expectations will reinforce Fed officials who want to wait longer before cutting interest rates as they assess the impact of tariffs on inflation. They’ve so far held rates steady all ...