Consumer Confidence Slips as Inflation Expectations Jump

Consumer confidence fell to a seven-month low in February as inflation expectations surged, suggesting complications for the Fed’s inflation fight.

People shop at a grocery store in New York City on Aug. 14, 2024. Spencer Platt/Getty Images

Confidence among American consumers fell in February to a seven-month low as inflation expectations surged, according to the University of Michigan’s Surveys of Consumers, underscoring household concerns that price pressures may take longer to dissipate.

The University of Michigan’s consumer sentiment index fell to 67.8 from January’s 71.1, the lowest since July 2024, according to data released on Feb. 7.