After experiencing the worst inflation shock in decades, Americans are once again anticipating higher prices.
Recent data indicates that expectations about future inflation are on the rise, but not yet at a level that suggests uncontrollable price pressures.
The uncertainty in the economic outlook due to various policy shifts under President Trump, such as trade, immigration, and taxation, is adding to the concerns sparked by the recent inflation spike.
This situation poses a potential political problem for Mr. Trump and presents a challenge for policymakers at the Federal Reserve who are striving to maintain inflation at 2 percent.
Economists stress the importance of managing inflation expectations to prevent a self-fulfilling prophecy that could lead to a surge in prices, as seen in past decades.