US near-term inflation expectations hit record high: Survey

By Ovunc Kutlu

ANKARA (AA) - Near-term inflation expectations in the US hit a record high level in June, according to the Federal Reserve Bank of New York's Survey of Consumer Expectations released on Monday.

The expectation for the median inflation one year ahead increased to 6.8% in June, up 0.2 percentage point from 6.6% in May.

This marked the highest level in inflation expectation of the survey's history, which is conducted since 2013.

The uptick in inflation expectation comes as annual consumer prices in the US hit 8.6% in May, hovering near its highest in 40 years.

The Fed has so far increased its benchmark interest rate a total of 150 basis points since March, and signaled an additional 75 basis points of rate hike for later this month.

Annual consumer inflation in the US is expected to show an increase of 8.8% in June, which will be announced by the Bureau of Labor Statistics on Wednesday.