The Federal Reserve Bank of New York’s Survey of Consumer Expectations showed consumers' median year-ahead inflation expectations rising to 3.1% from 3.0%. This is the highest reading since July 2014. The Fed has made it clear that they are fine with inflation at more than 2% for a period of time after the pandemic, the expectation is that it will be short-lived. The survey shows consumers are gearing up as they expect to spend significantly more on gas, rent, and other essentials over the next year. Respondents also expressed concerns over how much food, medical care, and education will cost. The internet-based survey comes from a rotating panel of approximately 1,300 households.

The U.S. Bureau of Labor Statistics reported the Consumer Price Index for All Urban Consumers (CPI-U) increased a seasonally adjusted 0.4% in February, after a 0.3% rise in January. The gasoline index accounting for over half of the seasonally adjusted increase in the all items, rising 6.4% in February. The index for fresh fruits increased 1.8%, the largest increase in that index since March 2014. The all items index rose 1.7% for the 12 months ending February, after a 1.4% rise in January. The index for all items less food and energy rose 0.1% February. While indexes for shelter (+0.2%), recreation (+0.6%), and medical care (+0.3%) all increased, indexes for airline fares (-5.1%), apparel (-0.7%), and used vehicles (-0.9%) declined. The index for all items less food and energy increased 1.3% over the last 12 months and follows a 1.4% rise for the 12 months ending January.

The Department of Labor’s Job Openings and Labor Turnover Survey, or JOLTS reported job openings increased in January by 165,000 to roughly 6.9 million. The job openings rate increased to 4.6% from December’s 4.5%. Most of the gains came from services and retail. Hires declined to 5.3 million in January, down from 5.4 million in December, and 6.1 million in November. The hiring rate is now at 3.7%, down from 3.8%. Layoffs decreased slightly to 1.7 million from 1.8 million in December, lowering the layoffs rate to 1.2% from December’s 1.3%. There were about 10.1 million unemployed workers vying for 6.9 million job openings or about 1.5 unemployed workers for every job opening.