US consumer expectations steady in January, but inflation expectations rise
Consumer confidence in the US was little changed at the start of 2025, but expectations for inflation jumped, the results of a closely followed survey revealed.
The University of Michigan's consumer confidence index dipped from a reading of 74.0 for December to 73.2 in January.
Economists had forecast a print of 73.8.
Joanne Hsu, the survey's director, said that the change in the index was "well within the margin of error".
However, she noted the divergence between views for the present and future, arguing that it reflected "surging" worries about the future path of inflation.
A gauge of inflation expectations one year ahead jumped from 2.8% last month to 3.3%, thus moving above the 2.3-3.0% range in place before the pandemic.
Long-run inflation expectations increased from 3.0% to 3.3%, marking just the third time out of the last four years that they had registered such a marked increase.