US Inflation Expectations Drop Again, New Low For Sixth Straight Month

The University of Michigan survey on year-ahead inflation expectations reported another new low for Feb. 2026 at 3.5%, the lowest reading since Jan. 2025, and a contninuation from the last five months of reported lows. This report of 3.5% is a 0.5% drop from Jan. 2026, a 0.8% drop from Feb. 2025, and a 1.3% drop from the beginning of the initial decline back in Aug. 2025, which reported at 4.8%. 

Feburary's numbers also continue the trend of beating the forecast, as for Feb. 6, they reported 0.5% under the forecast of 4.0%, and the report prior, Jan. 2026 came in at 0.2% under the forecast with 4.0%. With consumer sentiment trending in the right direction, we look to be on track to return to the readings we saw in 2024, ranging from 2.6%-3.2%, and even the pre pandemic lows from 2018-19 which sat almost entirely below 3%.

Source: https://tradingeconomics.com/united-states/michigan-inflation-expectations