US short-term inflation expectations rise, market bets inflation will reach 3% in the next year

According to a report by Jinse Finance, traders expect that with the ongoing Iran conflict, U.S. consumer inflation will accelerate over the next 12 months. Refinitiv data shows that bets in the inflation swap market reflect expectations of about 3% inflation over the coming year, up from around 2.4% at the end of February. The market indicates that inflation concerns are mainly focused on the short term. Expectations for the 12-month inflation rate starting one year from now remain relatively moderate, at about 2.4%.