Americans sour on economy as inflation expectations hit highest level since 1991

The feelings of consumers declined in March, as the effects of President Donald Trump’s policies and high prices in the highest prices remain for the Americans.

The latest survey of the University of Michigan for consumers, which was released on Friday, showed that the feelings reached its lowest level since November 2022. The index slipped into reading 57.9, less than 64.7 was seen last month and 63 by economists.

Press increased around inflation expectations again in March, when inflation forecast jumped for a year to 4.9 % from 4.3 % in the previous month. Just two months ago, consumers only expected inflation by 3.3 % during the next year.

Long -term inflation expectations, which follow expectations over the next five to 10 years, also increased, reaching 3.9 % in March, an increase of 3.4 % in February. This represents the highest level of long -term inflation expectations since 1991. In the release, the expected change in unemployment has reached its lowest level since the great financial crisis.

“While the current economic conditions have changed only a little, future expectations have deteriorated through multiple aspects of the economy, including personal finance, labor markets, inflation, working conditions and stock markets,” Joan Hazou at the University of Michigan told Consumer Director Joan Hazu in the statement. “Many consumers were martyred at the high level of uncertainty about politics and other economic factors.”

HSU added that the repeated integrations in economic policies make it “very difficult” for consumers to plan for the future and thus outperform feelings. The recent stumbling in consumer feelings came, as the new Trump administration slapped the definitions of imports from multiple countries, but it often fluctuates on what the actual tariff rates will be and when to be implemented. The European Union and Canada also threatened the revenge definitions of the United States.

The tariff has not reached a large extent to the inflation data yet. Earlier this week, a report issued by the Labor Statistics Office showed that the “Basic” Product Prices Index (PPI) – which tracks the price changes that the companies they see and exclude food and energy – rose by 3.4 % from the previous year, a decrease from 3.6 % in January. On the previous day, the Consumer Prices Index (CPI) showed that the basic prices increased by 3.1 % in February, the lowest annual increase in the basic consumer price index since April 2021.

Harry Chambers, the economy assistant in capital economics, noted that due to the inflation expectations seen in a Friday survey, “consumer fears are increasingly about the impact of definitions.”