US consumers' inflation expectations hit record: Fed survey

ANKARA

The US consumers' inflation expectations have hit their record high level in 8 years, according to a survey by the New York Federal Reserve on Monday.

Inflation expectation for the short-term, or one year ahead, rose to 5.2%, showed the Survey of Consumer Expectations for August.

The expectation for medium-term, the next three years, increased to 4%.

Both figures are the highest since the survey was first done in 2013.

The Fed has long said it would allow inflation to climb above 2% for some time before raising interest rates, but both producer and consumer prices hover way above the central bank's target.

While US producer prices rose 8.3% in August on an annual basis, consumer prices were up 5.4% in July from the same month a year ago.