NEW YORK, April 10 Reuters Americans said last month that access to credit was at its toughest level in nearly a decade, as they also braced for higher levels of inflation over the next few years, a report from the New York Fed said Monday.

In the March Survey of Consumer Expectations, the bank found that the share of households who said credit is harder to get versus a year ago rose to the highest level in a survey that dates back to 2014. The banks report also said, respondents were more pessimistic about future credit availability as well, with the share of households expecting it will be harder to obtain credit a year from now also rising.

Meanwhile, households project that inflation a year from now would stand at 4.7, versus Februarys 4.2. That was the first increase in yearahead expected inflation since October. Inflation three years from now is seen at 2.8, from 2.7 the prior month, while five years out, survey respondents said they expected inflation at 2.5, down from the prior months 2.6.

Despite expectations of higher nearterm inflation, respondents to the New York Fed survey see lower gasoline, food and rent costs, while they forecast a 1.8 rise in home prices.

The rise in inflation expectations could prove to be a new challenge for the Federal Reserves effort to lower inflation. Central bankers broadly believe that where the public expects price pressures to go exerts a strong influence on where inflation is now. Over the last year the Fed has been engaged…