US Consumer Inflation Expectations Jump to a Five-Month High

  • Year-ahead inflation views rose to 3.8% in early October
  • University of Michigan sentiment index at 63, est. 67

A customer shops in a grocery store in Houston, Texas. 

Photographer: Brandon Bell/Getty Images
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US consumers’ year-ahead inflation expectations rose sharply in early October, driving a steep deterioration in Americans’ views of their finances as well as sentiment.

Americans expect prices will climb at a 3.8% rate over the next year, the highest in five months and up from the 3.2% expected in September, according to the preliminary October reading from the University of Michigan. They see costs rising 3% over the next five to 10 years, compared to last month’s 2.8%.