The New York Fed's monthly survey of consumer expectations found that median year-ahead inflation expectations jumped to 2.8 percent in August, the highest reading this year, from 2.5 percent in July. Three-year expectations rose to 2.7 percent, from 2.5 percent in the previous month, reports Reuters.
Both measures rebounded from near record low levels in July. The Fed, looking to raise interest rates soon, wants to see signs of inflation pressures before acting.
"This increase in both time-horizons was consistent across age, education and income groups," the New York Fed said of the internet-based survey of a rotating sample of 1,200 households, done by an outside group.