US Year-Ahead Inflation Expectations Fall to Lowest Since 2021
- One-year price views dropped to 4.6% in early December
- University of Michigan sentiment index climbed to 59.1
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US short-term inflation expectations unexpectedly declined to the lowest level in more than a year and consumer sentiment picked up, helped by falling gasoline prices.
Consumers expect prices will climb at an annual rate of 4.6% over the next year, down from the 4.9% expected a month earlier, to the lowest since September 2021, according to the preliminary December reading from the University of Michigan. Long-term inflation expectations held at 3%.