A preliminary consumer survey released by the University of Michigan in April showed inflation expectations one year ahead rising significantly for the first time in about two years. Against the backdrop of rising gasoline prices. However, the consumer confidence index also rose.
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“These patterns suggest that consumers are well aware that inflation is softening from its peak, but that higher prices continue to provide economic comfort,” said Joan Shu, director of consumer research at the University of Michigan, in a statement. It shows a situation where people are not getting that much of a feeling.”
Consumer confidence has generally remained subdued, with inflation remaining moderate and rising interest rates holding back household spending. U.S. retail sales fell for the second straight month in March, announced today.
U.S. retail sales fall for second straight month as fuel, cars plunge (2)
Still, the Michigan survey showed both the current situation index and expectations index rose, and the consumer confidence index rose from the previous month.
The index on the purchasing environment for durable goods also improved. However, about 42% of respondents said that high prices are putting pressure on household budgets, the highest level since December last year.
See table for detailed statistics.
Original title:US Year-Ahead Inflation Views Jump by Most in Nearly Two Years(excerpt)
(Add more stats details and update)