Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

US consumer sentiment drops again on inflation fears

Inflation may be cooling, but American consumers have growing concerns that price hikes will accelerate again, according to the University of Michigan's latest consumer sentiment survey.

Inflation may be decreasing in the U.S., but Americans expect it to surge again, according to fresh data.

The University of Michigan's latest consumer survey released Wednesday found consumer sentiment fell for the fourth month in a row in November, while households' inflation expectations climbed for the second straight reading.

According to the findings, consumers see inflation accelerating to 4.5% over the next year, up from 4.2% in October and 3.2% in September. 

Over a five-year horizon, consumers now see inflation running at 3.2% on average, up from 3.0% in October and 2.8% in September. That is the highest since a matching reading of 3.2% in 2011. Households' long-term inflation outlook has not been higher than that since 2008, when it reached 3.4% as the financial crisis was beginning to unfold.

RETAILERS ARE CAUTIOUS ABOUT THE FUTURE OF CONSUMER SPENDING: HEATHER ZUMARRAGA

"These expectations have risen in spite of the fact that consumers have taken note of the continued slowdown in inflation," Joanne Hsu, director of the survey, said in a statement. "Consumers appear worried that the softening of inflation could reverse in the months and years ahead."

The Labor Department reported last week that the consumer price index, a broad measure of the price of everyday goods including gasoline, groceries and rents, was unchanged in October from the previous month. Prices climbed 3.2% on an annual basis. 

AMERICANS STRESS THAT THEIR US DOLLARS AREN'T STRETCHING FAR ENOUGH TO MAKE UP FOR INFLATION

But when compared with January 2021, shortly before the inflation crisis began, prices remain up a stunning 17.62%. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Inflation has created severe financial pressures for most U.S. households, which are forced to pay more for everyday necessities like food and rent. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily impacted by price fluctuations.

FOX Business' Megan Henney and Reuters contributed to this report.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.