Cleveland Fed inflation expectations falls to 2 year low
WSJ Timiraos tweets that the Cleveland Fed measure of one-year inflation expectations fell to 4.3% in July from 5% in April. This is the lowest level in 2 years.
- Description: The Survey of Firms’ Inflation Expectations (SoFIE) is a large quarterly representative panel of firms in the manufacturing and services sectors that was created to measure inflation expectations of chief executive officers (CEOs) in the United States.
- What do we collect? Each quarter the survey captures respondents’ beliefs for expected CPI inflation over the next 12 months. Once per year it asks about beliefs for average CPI inflation over the next 5 years, CPI inflation over the last 12 months, the Federal Reserve’s inflation target, and the probability that CPI inflation over the next 12 months will exceed 5%.
Earlier today the New York Fed survey saw one-year inflation expectations fall to 3.5% which was the lowest level since April 2021
