Inflation Nation

Consumers are beginning to expect prices to rise—exactly what the Fed does not want to hear.

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This analysis by JPMorgan Chase is really bad news:

Consumer sentiment dropped to a 28-year low in early May, and there is increasing evidence that surging short-term inflation expectations are spilling over to long-term inflation expectations. One-year inflation expectations increased to 5.2 percent from 4.8 percent a month earlier and are now at their highest level since 1982. Five- to 10-year inflation expectations have moved up less dramatically, but, after rising from 3.2 percent to 3.3% percent, they are now at their highest level since 1996.