US Inflation Expectations Surge Amid Tanking Consumer Sentiment: UMich Survey

Around 47 percent of consumers said that high prices were eroding their living standards.

Gas prices are seen at a gas station in Los Angeles on Sept. 28, 2023. Robyn Beck/AFP via Getty Images

Americans expect inflation to worsen in the coming months and have lower expectations regarding personal finances, indicating a dismal national economic outlook.

“Year-ahead inflation expectations rose from 3.2 percent last month to 4.2 percent this month, the highest reading since May 2023,” an Oct. 27 survey report by the University of Michigan states. Coinciding with the surge in inflation, consumer sentiment fell to 6 percent in October after two consecutive months of little change.