Consumer Sentiment Surges as Inflation Expectations Plummet

Consumer sentiment in the US has seen a significant boost, with a 13% increase in optimism about the economy, primarily driven by improvements in the expected trajectory of inflation. This follows a wave of optimism in November, particularly among the 55-plus age group, as concerns over higher prices, wars, and rates eased. Consumers now expect prices to rise at the slowest pace in two years, which is noteworthy for the Federal Reserve as it considers inflation and its impact on consumer behavior.