US Consumer Sentiment soars, price outlook hits three-year low

The University of Michigan sentiment index shot up to 78.8 in early January, but short-term inflation views dropped to 2.9%. US consumer sentiment jumps, and price outlook hits three-year low.

Over the coming year, consumers anticipate price increases at an annual pace of 2.9%, down from 3.1% predicted one month earlier.

Early in January, US consumer confidence surged to its highest level since 2021, far above forecasts, but short-term inflation expectations fell to a three-year low.

The largest monthly gain since 2005 was recorded by the University of Michigan’s consumer mood index, which increased 9.1 points to 78.8. The preliminary result for January exceeded all projections according to a Bloomberg poll of economists.