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U.Mich 1Y Inflation Expectations Surprisingly Surge Beyond Flash Estimate

US DATA
  • U.Mich consumer inflation expectations jumped further for the 1Y, registering 4.2% vs preliminary 3.8% for a sharp rise from the 3.2% in September, marking its highest reading since May.
  • The 5-10Y measure was confirmed to have increased 0.2pps back to 3.0%, back in its narrow 2.9-3.1% range seen in 25 of the last 27 months.
  • From the press release: “Consumer sentiment confirmed its early-month reading, falling back about 6% this October following two consecutive months of very little change. This decline was driven in large part by higher-income consumers and those with sizable stock holdings, consistent with recent weakness in equity markets.”
  • “While consumers recognize that inflation has slowed down from its peak last summer, they cannot ignore that their budgets remain stretched and their purchasing power reduced,’’ Joanne Hsu, director of the survey, said in a statement.

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