U.S. Short-Term Inflation Expectations Rise, Market Bets on Inflation Climbing to 3% Over the Next Year

Odaily News Traders expect U.S. consumer inflation to accelerate over the next 12 months as the Iran conflict persists. Data from Refinitiv shows that bets in the inflation swap market reflect expectations for inflation to be around 3% over the next year, higher than the level of about 2.4% at the end of February. The market indicates that inflation concerns are primarily concentrated in the short term. Expectations for the 12-month inflation rate starting one year from now remain relatively moderate, at around 2.4%. (Jin10)