What does the future trend of inflation mean?

Inflation expectations are an important indicator of future inflation. Also, long-term inflation expectations are at a level consistent with the FOMC's 2% target. According to the Federal Reserve Bank of New York's monthly consumer expectations survey, medium-term expectations rose between 2021 and 2022 and have now fully returned to pre-pandemic levels.

Meanwhile, inflation expectations a year from now have declined sharply since their peak of nearly 7% in June last year. It's now only about three percent above the average between 2014 and 2019.

Another useful indicator for measuring inflation trends is the New York Federal Reserve Bank's Multi-Core Trend (MCT) inflation. As of September, after being close to 5-1/2% in June last year, MCT was 2.9%. Other measures of underlying inflation have also shown significant declines since last year.

If I invest in Xiaobai, I chose this