US Consumer Sentiment Falls on Higher Inflation Expectations
The University of Michigan consumer sentiment for the US fell to 73.2 in January 2025 from 74 in December which was the highest in eight months, and below forecasts of 73.8, preliminary estimates showed.
The expectations subindex dropped to 70.2 from 73.3 while the current conditions gauge increased to 73.2 from 74. January’s divergence in views of the present and the future reflects easing concerns over the current cost of living this month, but surging worries over the future path of inflation.
Meanwhile, year-ahead inflation expectations soared to 3.3%, the highest in eight months, from 2.8% in December and long-run inflation expectations also rose to 3.3% from 3%. This is only the third time in the last four years that long-run expectations have exhibited such a large one-month change.
Source: Trading Economics
