US short-term inflation expectations are rising, with markets betting on inflation to reach 3% over the next year.

Traders expect U.S. consumer inflation to accelerate over the next 12 months as the conflict with Iran continues. Refinitiv data shows that bets in the inflation swap market reflect an expectation of around 3% inflation over the next year, up from around 2.4% at the end of February. The market indicates that inflation concerns are primarily focused on the short term. Expectations for inflation over the next 12 months, starting a year from now, remain relatively modest, at around 2.4%. (Jinshi)