Inflation expectations rise as consumers predict financial improvement

The New York Federal Reserve reported U.S. consumers were bracing last month for higher levels of inflation in coming years even as they marked up expectations that their personal financial situations would improve markedly.

Respondents to the regional Fed bank's survey of consumer expectations in November see inflation a year from now at 3%, versus the 2.9% expected in October, while inflation in three years is seen at 2.6%, compared to 2.5% in the previous month.

 Inflation five years from now is expected to be 2.9%, compared to 2.8% in October.