NEW YORK (Reuters) – U.S. inflation expectations were mostly flat in November, remaining near their lowest levels in years, according to a Federal Reserve Bank of New York survey that also painted a more positive picture of the job market.
The survey of consumer expectations, which the Fed eyes among other data as it cautiously raises interest rates, showed the one-year-ahead measure stable at 2.61 percent. The three-year gauge slipped a bit to 2.78 last month, from 2.81 in October.
Both have edged higher in recent months but they are down for the year and remain near their lowest readings since the survey began in mid-2013. That covers a period in which spot U.S. inflation levels have lingered below a 2-percent Fed target.
Nonetheless, the central bank expects to hike rates again this week in part due to labor market strength. The survey reflected this trend with jumps in both earnings growth and employment expectations in November.
The internet-based survey is done by a third party and taps a rotating panel of about 1,200 household heads.
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