NEW YORK (Reuters) - Measures of U.S. inflation expectations dropped to their lowest levels in four months in March, reversing a brief run-up, according to a Federal Reserve Bank of New York survey released on Monday that could temper hopes for broader price pressure.
The survey of consumer expectations, an increasingly influential gauge of prices for the U.S. central bank, showed that both year-ahead and three-year-ahead expectations fell to 2.7 percent, from 3 percent in February.
“Both declines were fairly broad-based, but largest among middle-aged and lower-educated household heads,” the New York Fed said of the survey, which has been conducted since mid-2013.
The measurements rose through December and January to their highest levels since mid-2015, before flattening in February and declining last month. Fed expectations for a gradual rise in inflation, after years below a target, have prompted policymakers to raise interest rates twice since December. [nL2N1GQ0M4]
The internet-based survey is done by a third party and taps a rotating panel of 1,200 household heads.
Reporting by Jonathan Spicer; Editing by Meredith Mazzilli