BREAKING: University of Michigan Consumer sentiment lower with higher Inflation Expectations

4:02 PM 10 January 2025

03:00 PM GMT, United States - University of Michigan inflation report for January:

  • Michigan Current Conditions: actual 77.9; previous 75.1;

  • Michigan Consumer Sentiment: actual 73.2; forecast 74.0; previous 74.0;

  • Michigan Consumer Expectations: actual 70.2; previous 73.3;

  • Michigan 5-Year Inflation Expectations: actual 3.3%; previous 3.0%;

  • Michigan 1-Year Inflation Expectations: actual 3.3%; previous 2.8%;

 

The January data shows a concerning divergence: while current economic conditions improved slightly (77.9 from 75.1), expectations deteriorated (70.2 from 73.3). The sharp rise in both 1-year and 5-year inflation expectations to 3.3% signals growing consumer anxiety about future price pressures, especially notable among lower-income groups. This significant shift in inflation psychology, paired with stable but subdued overall sentiment (73.2), suggests consumers are becoming more worried about long-term economic prospects despite feeling some immediate relief from cost pressures.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

 

There was little impact on EURUSD, which started to hover around 1.025.

 

US100 continued the decline after data publication.

Share:
Back

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits