Global Finance News
11 Sep 2026, 15:26
U.S. Consumer Sentiment Drops as Inflation Expectations Jump to 4.6%
U.S. consumer sentiment deteriorated sharply in September while near-term inflation expectations climbed, adding to concerns about the outlook for household spending and price pressures.
The University of Michigan Consumer Sentiment Index fell to 47.8 from 51.7, well below the 51.0 forecast. Consumer expectations weakened even more, dropping to 45.8 from 51.5 and missing expectations of 50.5.
At the same time, one-year inflation expectations jumped to 4.6% from 4.0%, significantly above the 4.2% forecast. The increase comes as elevated oil prices and broader inflation concerns remain in focus.
The data presents a difficult combination for the Federal Reserve: weakening consumer confidence alongside rising inflation expectations. It follows August CPI data showing headline inflation at 3.4% year-over-year and could complicate the Fed’s policy decision next week.
U.S. consumer sentiment deteriorated sharply in September while near-term inflation expectations climbed, adding to concerns about the outlook for household spending and price pressures.
The University of Michigan Consumer Sentiment Index fell to 47.8 from 51.7, well below the 51.0 forecast. Consumer expectations weakened even more, dropping to 45.8 from 51.5 and missing expectations of 50.5.
At the same time, one-year inflation expectations jumped to 4.6% from 4.0%, significantly above the 4.2% forecast. The increase comes as elevated oil prices and broader inflation concerns remain in focus.
The data presents a difficult combination for the Federal Reserve: weakening consumer confidence alongside rising inflation expectations. It follows August CPI data showing headline inflation at 3.4% year-over-year and could complicate the Fed’s policy decision next week.
