Analysis: University of Michigan inflation expectations are unpleasant again, with unusually large increases for three consecutive months

On March 14, "Fed mouthpiece" Nick Timiraos posted on social media that the University of Michigan's inflation expectations were disappointing again, with one-year inflation expectations jumping from 4.3% to 4.9%. There have been unusually large increases of 0.5 percentage points or more for three consecutive months. The increase this month was reflected across all three political affiliations. Long-term inflation expectations surged from 3.5% to 3.9% in March. (Note: This survey has recently been fully converted to online, which may increase volatility) This is the largest monthly increase since 1993, driven by a sharp rise among independents, and following a already large increase in February.