According to a Federal Reserve survey, Americans became more worried about inflation in October, with fears of a surge in gasoline prices the main reason.
The New York Fed's monthly Survey of Consumer Expectations shows that inflation expectations for the year ahead are at the highest level since July. The three-year outlook increased to 3.1%, while the five-year outlook increased to 2.5%.
The spike in prices at the pump was the root of the heightened concerns.
Respondents think gas prices will go up by 4.8% over the next year, up from a small increase in September.
Consumers expect food prices to go up by 7.6% in the year ahead, up from 6.8% in September. The outlook for medical costs and rent was the same as in September, with the latter up 0.1 percentage point.
Less than a week ago, the Bureau of Labor Statistics reported that inflation rose 0.4% in October. The annual rise of 7.7% was half a percentage point lower than the previous month.
The Fed has raised interest rates to bring down inflation. A series of increases has brought the central bank's benchmark rate up about 3.75 percentage points.
In the housing market, the increases have had an impact on sales and prices.
Home prices were expected to increase by 2%, the same as September and the lowest since June.
The Fed is trying to cool the labor market. Almost half of respondents think the unemployment rate will go up a year from now.
The median expectation for household income was a new record. The percentage of spending growth went up.
It will be more difficult to get financing in a year's time, according to a record high 56.7% of respondents.
The Survey of Professional Forecasters pointed to higher inflation and lower growth in the economy. GDP growth is expected to be 1.6% this year and 1.3% in the next two years, up from previous estimates of 7.5% and 3.2% respectively.
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