Wednesday, October 8, 2025

Latest

Americans’ Inflation Expectations Fall to Lowest Since April 2021

With the latest University of Michigan consumer survey published on Friday, all eyes were on respondents’ near- and long-term inflation expectations.

Latest figures released by the BLS on Thursday reinforced observations that inflation may have peaked, thanks to a 0.1% month-over-month decline in December CPI. As such, short-term inflation expectations slumped to the lowest since April 2021 in early January; US consumers are now anticipating prices will rise 4% over the next 12 months.

Meanwhile, the sentiment index jumped from 59.7 to 64.6, the highest in nine months and surpassing economists’ forecasts calling for a reading of 60. With respect to medium-term inflation expectations, respondents said they foresee price pressures rising to 3%, up from previous forecasts of 2.9%.

Americans’ view on personal finances also increased in January, rising 16% to the highest reading in eight months. The majority of the survey’s respondents said they expect their wages to rise in unison with prices in the next 12 months, the largest proportion since October 2021. Conditions for major household purchases also increased, albeit respondents noted higher interest rates as an impediment.

Although markets are now pencilling in a 25 basis-point interest rate hike come the Fed’s next policy meeting in February, the survey’s respondents still expect a recession will occur with the next year. However, the outlook improved for the next five years. “That said, given current historic lows in unemployment and strength in expected incomes, a gradual slowdown in spending appears more likely than a cliff-like drop,” explained survey director Joanne Hsu.

Information for this briefing was found via the University of Michigan. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

US Inflation Still Persistently High

As was widely expected, consumer prices remained relatively unchanged in April, rising 0.4% from the...

Wednesday, May 10, 2023, 08:38:06 AM

Canadian Consumer Prices Still Aren’t Cooling as Food, Shelter Inflation Rise

Consumer prices across Canada remained elevated in November, as core inflation fails to cool. Particularly,...

Wednesday, December 21, 2022, 09:41:02 AM

US Consumers Expect Softened Labour Market, Persistent Inflation

Despite persistence from the Biden administration and the Federal Reserve that the US economy is...

Monday, August 1, 2022, 11:09:00 AM

Sobeys Expands Stock Buyback Program as Food Bank Demand Soars Across Canada

With Canada’s latest grocery inflation figure for May coming in at 9.0% and its food...

Wednesday, June 28, 2023, 07:39:00 AM

Jerome Powell Warns of Ongoing Rate Hikes

Although US inflation is showing signs of easing— albeit slowly, the Fed appears adamant on...

Thursday, February 23, 2023, 03:07:00 PM