US short-term inflation expectations are rising and may reach 3% in the next year.

According to Mars Finance, citing Jinshi, traders expect US consumer inflation to accelerate over the next 12 months as the conflict with Iran continues. Refinitiv data shows that bets in the inflation swap market reflect an expectation of around 3% inflation over the next year, up from about 2.4% at the end of February. The market indicates that inflation concerns are mainly focused on the short term, while expectations for the 12-month inflation rate starting a year from now remain relatively moderate at around 2.4%.