Inflation & Prices
US Consumer Long-Term Inflation Expectations Hit 12-Year High
- Five- to 10-year inflation views rose to 3.2% in early May
- University of Michigan sentiment fell to six-month low
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US long-term inflation expectations unexpectedly accelerated in early May to a 12-year high and consumer sentiment soured, reflecting growing concerns about the economic outlook.
Consumers see prices climbing at an annual rate of 3.2% over the next five to 10 years, according to the preliminary May reading from the University of Michigan. They anticipate costs rising 4.5% over the next year, compared to last month’s 4.6%, data Friday showed.