Inflation Expectations Remain Elevated

For both next year and the next five years

Despite the rate hikes thus far and tough talk from the Fed, inflation expectations for the coming year haven’t really changed much from peak:

Even more worrying, the five year inflation expectation remains elevated:

Inflation is, like many things related to money and the economy and markets, a partially self-fulfilling prophecy. So, expectations matter. And, it seems people are expecting price pain for some time to come.