Monday, February 9, 2015

The Under 40s are Most Clueless about the Coming Price Inflation

Price inflation expectations are low overall, but the young, who never experienced the US inflation of the 1970s and early 1980s, have the least expectation of  accelerating inflation.

According to a Fed survey, people over 60 expect inflation to come in at 3.4% over the next three years, while people under 40 expect it to be 2.8%.

For the record, in the EPJ Daily Alert, I am warning that price inflation, likely starting in the second half of 2015, will be much higher. The Fed won't become concerned about price inflation until it hits 3%, but by then the inflation could get out of hand with a first stop at 5%, and an eventual climb to the low double digits.


1 comment:

  1. What if there's a Grexit and the euro tanks? What if the yen finally crashes?
    What if the South American currencies tank?
    What if credit doesn't expand in 2015?
    My point is there are a lot of dollar bullish factors out there that can't be ignored.