The University of Michigan's consumer sentiment survey reveals a sharp increase in inflation expectations for the coming year. Consumers anticipate a 4.3% price increase, the highest since November 2023. The surge is driven by Democrats, who now expect a 5.1% rise in prices. Longer-term inflation expectations also ticked up to 3.3%. The Federal Reserve closely monitors these expectations as they can influence actual inflation.
The University of Michigan’s gauge of consumer expectations for inflation over the next 12 months surged higher in early February, indicating that American households think inflation will go much higher over the coming year.
Longer-run inflation expectations, a measure of average expected price changes over the next five years, ticked up to 3.3 percent in February, up from 3.2 percent in the prior month. This too was largely driven by surging Democrat fears of inflation. The average expected inflation among Democrats rose to 4.2 percent, up from less than four percent a month ago and less than three percent prior to the election. Among independents, the longer-run expectation was unchanged.
The University of Michigan’s index of consumer sentiment fell to 71.1, the lowest since July. Economists had expected a reading of 74. The index of current conditions fell from 74 to 68.7 and the index of expected economic conditions fell to 67.3 from 69.3.
INFLATION CONSUMER EXPECTATIONS FEDERAL RESERVE UNIVERSITY OF MICHIGAN DEMOCRATS
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inflation Expectations Surge, Pulling Down Consumer Sentiment, Casting Doubt on Fed PolicySource of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
US Consumer Inflation Expectations Surge, Casting Doubt on Fed Rate CutsInflation expectations among American consumers spiked in January, according to a University of Michigan survey, challenging the Federal Reserve's decision to lower interest rates three times in late 2024. While consumers feel slightly better about their personal finances, concerns about rising prices in the future have heightened significantly.
Read more »
India Inflation Eases to 5.22% in December, Below ExpectationsIndia's inflation cooled for the second consecutive month, hitting 5.22% in December, falling short of analyst predictions. Food price inflation also eased, signaling a potential slowdown in inflationary pressures.
Read more »
India's Inflation Eases to 5.22% in December, Below ExpectationsIndia's inflation rate dipped to 5.22% in December, marking the slowest pace of price growth since August 2024. This decline, attributed to easing food prices and seasonal adjustments, suggests a potential shift towards monetary easing by the Reserve Bank of India.
Read more »
Inflation Concerns Persist: Market Anticipates CPI Rise and Energy Costs Fuel Rate ExpectationsRising inflation expectations are driving market expectations for a 0.4% increase in the Consumer Price Index (CPI) and higher interest rates. Energy costs are a key driver, pushing up both short-term and long-term inflation swaps.
Read more »
U.S. stock futures are little changed as investors brace for key consumer inflation report: Live updatesInvestors looked ahead to the release of December’s CPI data and the start of the fourth-quarter earnings season.
Read more »