the Federal Reserve (Fed) expect rising prices is only temporary, however, other market participants are not so sure. JPMorgan (J.P. Morgan) on financial professionals conducted a new survey shows that core inflation rates around the world expected is on the rise.
receive the survey of about 750 people, of which 40% from around North America.
the United States, respondents expected on average, excluding food and energy prices, core consumer price index (CPI) rising to 1.8% one year after, higher than the last year of the last survey in November 1.4% and higher than the core of the February CPI registered an increase.
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EU Summit gradually line gradually near euro bad followed dollars all fell dollars index challenge 16 months low Japan Central Bank then injection 2 trillion yen Europe Central Bank April interest rates expected warming Portugal GDP or will appears atrophy o plus Central Bank entered policy wait-and-see period [RMB premium][market Center]report pointed out that , Higher oil prices and commodity prices continue to rise in the near future findings may have been affected, but the United States and United Kingdom's core rate of inflation has been on the rise.
in addition, investors believe in the medium term, that is, after 2-5 the overall inflation rate rise will continue. Respondents on average expected United States the medium-term inflation rate of 2.9%.
survey shows that 61% of respondents expected United States inflation rate will be higher than the Federal Reserve target level, generally considered at around 2%. 12% of respondents believe that inflation will be significantly higher than the target level.
with financial professionals above expected United States inflation concerns echoes of the family.
inflation expectations that the Fed's policy environment more complex. March 15 policy statement display, fed officials have stable inflation expectations, as in a long time to maintain a basis of super low interest rates.
contained inflation expectations that the risk is that wage and price increases will be reflected in the trade unions in labour contracts and procurement contracts, which will lead to actual inflation rate to rise.
investor sentiment will have a more serious impact on the Fed's policy. If bond holders that the Fed lags behind the price trend in the interest rate policy, will be pushed up bond rates, so that market forces will stand to Fed easing position opposite. If borrowing cost increases were too high, economic recovery will be at risk.
increase in the salaries of the inflationary expectations of consumers and investors into actual inflation pressures. Salary Outlook, JPMorgan survey of investors believe United States salaries upward risks, but with Germany and the United Kingdom or France compared United States salary prospects to be more settled.
depressed salaries expected may provide sufficient time for the fed, so that it may, without excessive pressure under the premise of the policy emphasis in credit markets shift from growth to fight inflation.
