WASHINGTON (Reuters) – U.S. consumers believe price pressures will ease significantly in the coming months, a survey on Friday showed they The outlook for one-year inflation fell in January to the lowest level since spring
The University of Michigan Consumer Survey said the one-year preliminary inflation outlook slipped to 4.0 percent this month, up from 4.4 percent in December. This is the lowest reading since April 2021. From a five-year perspective, the outlook rose to 3.0% from 2.9% in the previous month, remaining narrow at the previous
17 range of 2.9%-3.1% within months.
The survey was conducted in December after government data on Thursday showed consumer prices fell for the first time in more than 2-1/2 years. Inflation is weakening as the Federal Reserve aggressively hikes rates, demand cools and supply chain bottlenecks ease.
Consumer spirits are picking up as inflation subsides. The University of Michigan’s preliminary index of consumer confidence in January was 64.6, higher than the previous month’s 64.7. Economists polled by Reuters Experts predict that the initial value is 60.5.
