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U.Mich Inflation Expectations Revised Lower, Notably So For 1Y Out

US DATA
  • U.Mich inflation expectations were revised lower in the final May release.
  • The 1Y surprisingly fell further to 4.2% (prelim 4.5%) for a drop from 4.6% in April but remains above the recent low of 3.6% of March.
  • The 5-10Y measure was revised a tenth lower as expected to 3.1% (prelim 3.2%), leaving it up from April's 3.0%. It’s still the highest since Jun’22 and has lifted 0.2pps in two months, but it keeps to the 2.9-3.1% range seen in every month except one since Jul’21 as opposed to poking to its highest since 2011 with the preliminary 3.2%.

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