The New York Fed survey shows short-term inflation expectations rising by the largest amount in a year.

A survey released by the New York Fed on Tuesday showed that short-term inflation expectations in March reached the highest increase in a year, with consumers expecting the outbreak of the Middle East war to push up gasoline and food prices. According to the New York Fed's monthly Consumer Expectations Survey, the median expectation for the inflation rate in the next year is 3.4%, up 0.4 percentage points from February. Expectations for inflation in the next three years rose slightly to 3.1%, while expectations for the inflation rate in the next five years remained at 3%. This survey, conducted from March 2nd to 31st, reflects an increase in consumer pressure in the United States and Israel after the two countries launched attacks on Iran. The war is driving up oil prices and once again increasing the pressure on inflation to rise, which has been above the Federal Reserve's 2% target for five consecutive years.