New York Fed survey shows U.S. inflation pressure builds up

WASHINGTON, Jan. 16 (Xinhua) -- Inflation expectation in the United States began to rise in December 2017, indicating inflation pressure might start to build up.

Median consumer expectations for inflation at the one-year horizon rose to 2.8 percent in December 2017 from November's 2.6 percent, a survey report released by the New York Federal Reserve Bank showed on Tuesday.

The median inflation expectations at the three-year horizon also rose from 2.8 percent in November to 2.9 percent in December.

Consumers continued to expect further improvement in labor market. Median one-year-ahead earnings growth expectations continued to increase from 2.6 percent in November to 2.7 percent in December, a level last reached in November 2014.

The probability that the unemployment rate will be higher one year from now dipped 0.2 percentage points to 33.5 percent in December, the lowest level since December 2014.

The personal consumption expenditures price index, an inflation gauge preferred by the Federal Reserve, rose 1.8 percent year on year in November 2017, higher than the 1.6 percent growth in the previous month.

Fed officials are dividing over monetary policy tightening pace for this year due to their differences over inflation outlook. The build-up of inflation pressure will likely assure the central bank to continue current gradual rate hiking pace. Enditem