Consumers expect prices to rise at a 2.7% annual rate over the next five to 10 years, the lowest level since April 2021, according to the final September reading from the University of Michigan. The initial figure for the month was 2.8%.
Respondents estimate costs will rise 4.7% over the next year, up slightly from the beginning of the month but still near the lowest level in a year, data on Friday showed.
However, uncertainty over near-term price prospects reached a four-decade high, as energy prices are falling but food prices are rising.
”Inflation expectations are likely to remain relatively volatile in the coming months, as this uncertainty is unlikely to abate in the face of continued global inflation pressures.”, he said in a statement Joanne Hsudirector of the survey.
The final college confidence index increased from 58.2 in August to 58.6. The median estimate in a survey of Bloomberg Economists pointed to a reading of 59.5.
A gauge of current conditions rose to 59.7, the highest since May. The survey’s indicator of future expectations remained unchanged at 58.
An index of purchase conditions for durable goods improved in September, but still remains near a record low.
A report released earlier on Friday showed US inflation-adjusted spending rose slightly in August, while a key price indicator accelerated more than expected, underscoring the resilience of consumers.