Record 49% Of Americans Say “High Prices Are Eroding Living Standards”; UMich

UMich inflation expectations soared in preliminary October data, with the year-ahead inflation expectations rose from 3.2% last month to 3.8% this month. The current reading is the highest since May 2023 and remains well above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations edged up from 2.8% last month to 3.0% this month…

Source: Bloomberg

All cohorts saw decreases in sentiment…

Meanwhile, the headline consumer sentiment gauge plunged to 63.0 (67.1 exp) from 68.1, led by a big drop in expectations (from 66.0 to 60.7)

Source: Bloomberg

UMich’s Joanne Hsu noted, “assessments of personal finances declined about 15%, primarily on a substantial increase in concerns over inflation, and one-year expected business conditions plunged about 19%.”

About 49% of consumers reported that high prices are eroding their living standards, up substantially from 39% last month and matching the all-time high last recorded in July 2022

The index of economic news heard by consumers worsened about 20% between last month and this month, reaching its lowest reading since May 2023. The most common negative topics mentioned were unemployment and higher prices, cited spontaneously by 20% and 16% of consumers, respectively.

But, but, but, Bidenomics?


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