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U.S. Consumer Sentiment Sinks as Inflation Expectations Soar

  • Michigan sentiment gauge drops to 59.7, lowest since 2011
  • One-year ahead inflation expectations hit four-decade high
A shopper walks out of a store at the Southland Center shopping mall in Taylor, Michigan.
A shopper walks out of a store at the Southland Center shopping mall in Taylor, Michigan.Photographer: Emily Elconin/Bloomberg
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U.S. consumer sentiment tumbled in early March to the lowest since 2011 and year-ahead inflation expectations rose to a four-decade high in the aftermath of Russia’s invasion of Ukraine.

The University of Michigan’s sentiment index dropped to 59.7, from 62.8 in February, data released Friday showed. The median estimate of economists in a Bloomberg survey called for a reading of 61. Consumers expect prices to rise 5.4% over the next year, the highest reading since 1981, according to the data.