The median expected year-ahead inflation rate in the US fell to 5.0%, its lowest reading since February, due to continued declines in energy prices, according to a survey released Friday.
The figure, however, is still well above the 4.6% reading from a year ago, University of Michigan’s consumers survey said.
“At 3.0%, median long-run inflation expectations remained within the 2.9-3.1% range seen over the past year,” it said. “Still, the share of consumers blaming inflation for eroding their living standards remained near 48%.”
The index of current economic conditions decreased 2.6 points to 55.5 in August, from 58.1 in July, according to the survey’s preliminary results.
“High income consumers, who generate a disproportionate share of spending, registered large declines in both their current personal finances as well as buying conditions for durables,” said Surveys of Consumers Director Joanne Hsu.
The index of consumer sentiment, on the other hand, rose 3.6 points to 55.1 this month, from 51.5 last month.
“Consumer sentiment moved up very slightly this month to about 5 index points above the all-time low reached in June. All components of the expectations index improved this month, particularly among low and middle income consumers for whom inflation is particularly salient,” Hsu said.
The index of consumer expectations also increased 7.6 points to 54.9, from 47.3, during that period.
