A survey showed that the United States' 1-year inflation expectations surged to 3.9%, the highest level in three and a half years.

According to the results of the September consumer expectations survey released by the Federal Reserve Bank of New York, the median 1-year inflation expectation stood at 3.9%.

This is a 0.3 percentage point increase from August and marks the highest figure in about three and a half years since May 2023 (4.1%).

The household spending growth expectation rose by 0.3 percentage points from August to 5.5%, also hitting a three-and-a-half-year high.

CNBC reported that these survey results are expected to place considerable pressure on members of the Federal Open Market Committee (FOMC), who are deliberating the direction of monetary policy as inflation significantly exceeds the 2% target.

The market expects the Federal Reserve to freeze the benchmark interest rate at the October FOMC meeting.

In this survey, 3-year inflation expectations inched up by 0.1 percentage point to 3.3%.

However, market indicators are less positive than this.

The 5-year break-even inflation (BEI) rate, a key inflation indicator in the bond market, is currently at a yearly high of 2.35%, and U.S. Treasury yields have been on a sharp upward trend over the past few weeks.

CNBC noted that FOMC members view consumers' inflation expectations as a key factor fueling actual price increases.

Soaring energy costs lie behind the unstable U.S. prices, with gasoline prices surging over 4% and heating oil jumping more than 10% during the single month of August.

(Photo: AP, Yonhap News)