The comparisons show that while households have raised their inflation expectations over the past few years, especially for the short-term measure, the increases were far less than one-for-one with how much they perceived inflation had already risen. I will monitor these comparisons to ensure that inflation expectations remain well anchored.
Any de-anchoring of expectations would be a major concern, as it could cause the high inflation that we have been experiencing to prove more persistent. Looking ahead, the outlook for inflation will depend, in part, on how the factors restraining supply responses and boosting cost pressures in each of these three main PCE price categories play out.