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
I see the continued decline in year-ahead inflation expectations as a sign that consumers are starting to trust inflation is coming back under control which sounds amazing
ReplyDeleteIt is good to see that inflation is finally trending downwards. I wonder if it will actually continue to decline and for how long.
ReplyDeleteThis is good news for the economy. When inflation rates are low, it means that people are expecting prices not to go up as quickly in the future. If this trend continues, it could keep inflation rates under control and mean that the economy is becoming more stable.
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