US Consumer Year-Ahead Inflation Expectations Unexpectedly Fall

Short-term inflation view matches lowest since March 2021
University of Michigan sentiment index at 71.2 in August

WATCH: University of Michigan Surveys of Consumers Director Joanne Hsu discusses the key takeaways from the latest consumer sentiment survey.Source: Bloomberg

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By Reade Pickert

August 11, 2023 at 2:00 PM UTC

Updated on

August 11, 2023 at 2:10 PM UTC

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US year-ahead inflation expectations unexpectedly declined in early August, matching a more than two-year low, despite higher gasoline and grocery costs.

Americans expect prices will climb at a 3.3% rate over the next year, down from the 3.4% expected in July, according to the preliminary August reading from the University of Michigan. They see costs rising 2.9% over the next five to 10 years, compared to last month’s 3%, data Friday showed.