Consumer Fears Over Inflation Hit a Record High in March, New York Fed Survey Shows

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Consumer Fears Over Inflation Hit a Record High in March, New York Fed Survey Shows
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Worries are increasing over inflation, with new Federal Reserve data showing a record-high fear over surging prices.

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Consumers see the fastest increases coming from rent , which accounts for about one-third of the CPI. Medical care, food and gasoline all are expected to increase at a 9.6% pace. The outlook for college costs decreased by 0.5 percentage point to 8.5%. Anticipated wage gains held steady at 3%, while 36.2% said they think the unemployment rate will increase over the next year, the highest level since February 2021. Unemployment is currently at 3.6%, just above where it was prior to the Covid pandemic though labor force participation remains 1 percentage point lower.

Anxiety increased slightly over job stability, with the probability of losing one's job over the next year rising to 11.1%, a 0.3 percentage point gain that is still well below the 13.8% pre-pandemic level.

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