U.S. inflation expectations edge up in April: NY Fed survey

Expectations for U.S. inflation increased, while the spending growth expectations dropped sharply to a series low in April, a survey conducted by the Federal Reserve Bank of New York showed on Monday.

Median inflation expectations for one year ahead edged up to 2.8 percent in April from March' s 2.7 percent, the survey showed.

"Increases were driven by lower education and lower income respondents," said the New York Fed.

Earnings growth expectations also improved in April, with the median earning growth expectation for one year ahead up to 2.5 percent from March' s 2.4 percent.

According to the survey, median household spending growth expectations dropped sharply from 3.3 percent in March to 2.6 percent, the lowest level observed since the start of the New York Fed' s survey in June 2013.

A recent statement by the Federal Reserve showed that Fed officials were less concern about the weak consumption growth, saying that fundamentals underpinning the continued growth of consumption remained solid.

Despite the weak growth at the beginning of this year, the Fed is still on track to gradually raise interest rates this year.

According to the forecast by Fed officials, the central bank would continue to raise interest rates twice this year, as the labor market continued strengthening and the inflation has been close to its 2 percent target. Endit