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Economics

US Year-Ahead Inflation Expectations Drop to Lowest Since 2021

  • Consumers see prices rising 3.8% in the next 12 months
  • University of Michigan sentiment index fell in early March
A customer views vegetables for sale at a grocery store in Scottsdale, Arizona.

A customer views vegetables for sale at a grocery store in Scottsdale, Arizona.

Photographer: Ash Ponders/Bloomberg
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US short-term inflation expectations fell in early March to the lowest level in nearly two years and long-run views also eased, but consumer sentiment still fell due to persistently high prices.

Respondents said they expect inflation to rise 3.8% over the next year, the lowest reading since April 2021, according to the University of Michigan’s preliminary reading. They expect prices to advance 2.8% over the next five to ten years, the lowest in six months.