US consumers increased their near-term inflation expectations in June, according to a new survey by the Federal Reserve Bank of New York.
The rise in price concerns comes even as energy costs have moderated following the preliminary peace deal between the US and Iran, which had previously driven up household energy bills.
The divergence between falling energy prices and rising consumer anxiety suggests that inflation expectations remain sticky.
While the preliminary US-Iran agreement has helped cool oil risk and contributed to a dip in US Treasury yields, households appear to be looking beyond the immediate energy relief.
This persistence in consumer sentiment adds a layer of complexity to the Federal Reserve's policy calculus as it prepares for its upcoming meeting.
The survey results contrast with broader market optimism that price pressures are set to moderate.