Economics
Americans’ Inflation Expectations Ease From Highest in 14 Years
- Final June consumer long-term expectations cools to 3.1%
- University of Michigan sentiment index still at record low
A shopper holds a basket with groceries inside a grocery store in San Francisco, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The University of Michigan’s final June reading of longer-term US consumer inflation expectations settled back from an initially reported 14-year high, potentially reducing the urgency for steeper Federal Reserve interest-rate hikes.
Respondents said they expect inflation to rise 3.1% over the next five to 10 years, down from a preliminary reading of 3.3%, according to Friday’s report. They see prices advancing 5.3% over the next year, matching the initial figure.