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U.Mich Long-Term Inflation Expectations Surprisingly High

US DATA
  • Mich consumer sentiment surprisingly fell to 57.7 (cons 63.0) from 63.5 in the May preliminary survey to its lowest since Nov.
  • Higher inflation expectations clearly played a role, most notably with the 5-10Y measure surprisingly rising to 3.2% (cons 2.9) after 3.0, breaking out of the 2.9-3.1% seen in every month but one since Aug’21 for the highest since 2011.
  • The 1Y measure meanwhile saw less moderation than expected, slowing marginally to 4.5% (cons 4.4) having surprisingly jumped 1pt to 4.6% back in April.
  • From the press release: "While current incoming macroeconomic data show no sign of recession, consumers’ worries about the economy escalated in May alongside the proliferation of negative news about the economy, including the debt crisis standoff."

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