Panelists of counting Claman Kenny Polcari and Jose Torres are falling apart with consumer stress.
OUR Consumer feeling In February, he refused more than expected at the lowest level in more than a year, while inflation expectations increased in the midst of uncertainty over the tariff plans of President Donald Trump.
The University of Michigan’s Consumer Research Research announced their consumer index, which fell from 71.7 in January to 64.7 in February. This is the lowest reading since November 2023 and was weaker than a preliminary reading 67.8, which was the expectation of a consensus among economists interviewed by Reuters.
Consumer Director’s poll, she noted that, although the feelings fell for both the Democrats and the independent, it was unchanged for the Republicans, for whom she wrote that she reflected “continuous disagreement on the consequences of new economic policies.”
Households’ expectations of inflation It also increased to 4.3% over the next year – which is the highest level since November 2023 and a sharp increase with 3.3% last month.
Consumer trust in February fell more than expected. (Victor J. Blue / Bloomberg via Getty Images / Getty Images)
HSU added that the current reading of inflation expectations “is now significantly above the range of 2.3-3.0% in two years before the pandemic.”
Over the next five years, households said they expect the inflation to last at 3.5%, which has been the highest since 1995 and an increase compared to 3.2% in January. HSU noted that it was the biggest increase in metrics compared to a month since May 2021.
“Both for a short- and for long -term inflation expectationsThe increase in this month was widespread and seen in revenues and age groups. Expectations on inflation increased this month for independent and democrats; They fell slightly to Republicans, “HSU wrote.
Fed pastlets depict tariffs into account in concern about greater inflation
Household inflation expectations have jumped to the highest level since November 2023. (Gabby Jones / Bloomberg via Getty Images / Getty Images)
The report comes because inflation has been stubborn in recent months above the aiming of federal reserves. Entered the consumer prices index, the popular measuring inflation warmer than expected at 3% on an annual basis for January.
President Trump The tariff plans were shaped during his first month in power. He has announced 10% of imports on imports from China, on top of the existing levies that have since entered into force. Trump also delayed 25% of tariffs in Canada and Mexico in early March after two countries announced the border security measures.
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Also announced 25% of tariffs imported steel and aluminumas well as calling for a reciprocal tariff plan that would align with US tariffs to those imposed by other countries to US exports – which is expected to be conducted after the completion of the study by the Management Board in April.
Reuters contributed to this report.
