Economics
US Long-Term Inflation Expectations Drop to One-Year Low
- University of Michigan five-year price forecast at 2.8%
- Overall consumer sentiment boosted as gas prices fell
A customer fuels a vehicle at a gas station in Hercules, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
US consumer long-term inflation expectations declined in early July by more than forecast at the same time a recent drop in gasoline prices helped boost sentiment.
Consumers expect prices will rise at an annual rate of 2.8% over the next five to 10 years, down from June’s 3.1% and the lowest since July of last year, University of Michigan data showed Friday. They see costs rising 5.2% over the next year, compared to last month’s 5.3%.