U.S. consumer sentiment improved sharply in June while inflation expectations eased, offering encouraging signs for the Federal Reserve’s inflation fight. The University of Michigan Consumer Sentiment Index rose to 49.3, well above expectations of 44.3 and the prior reading of 44.1.

Meanwhile, consumers’ one-year inflation expectations fell to 4.6%, down from 4.8% in May and below the 4.9% consensus forecast.