Inflation Expectations Soar to 12-Year High as Consumer Confidence Plunges

The closely-watched University of Michigan consumer sentiment survey shows a surge in inflation expectations and a drop in consumer confidence.

People shop in a grocery store in Los Angeles on Oct. 12, 2023. Mario Tama/Getty Images

Amid fears of negative economic effects of high interest rates and the wars in Gaza and Ukraine, U.S. consumer confidence fell for the fourth straight month in November while long-run inflation expectations rocketed to the highest level in 12 years.

The University of Michigan’s closely watched consumer sentiment gauge fell by more than 5 percentage points in November, to a reading of 60.4 percent.