Consumers Grow More Optimistic About Future Inflation – By Tim Smart (US News) / Sept 16, 2022
The improvement brings expectations to the lowest level since a year ago.
Consumers are getting more optimistic about future inflation, while remaining uncertain about the economy, according to the preliminary September estimate from the University of Michigan released Friday.
While overall sentiment about the current economy ticked up slightly to 59.5 from 58.2, it is still down 18% from a year ago.
Inflation expectations, however, improved with the median year-ahead inflation rate falling to 4.6%, the lowest reading since last September. At 2.8%, median long run inflation expectations dipped below the 2.9-3.1% range for the first time since July 2021.
Inflation has been the top economic concern of Americans for some time now, with the annual consumer price index for August showing prices rising at an 8.3% clip. However, that is down from 9.1% earlier in the summer, largely due to a sharp drop in the price of gasoline.
