"UMich: US Consumers' Inflation Expectations Surge for Second Consecutive Month"

US consumers' inflation expectations have risen for a second consecutive month in November, reaching the highest levels since April, according to a survey by the University of Michigan. Despite signs of slowing price increases, households anticipate inflation to accelerate to 4.5% over the next year. The survey also revealed that consumers see inflation running at 3.2% on average over a five-year horizon. These expectations have increased despite consumers acknowledging the continued slowdown in inflation, suggesting concerns that the softening of inflation could reverse in the future. The Federal Reserve remains cautious about the potential for a reversal and aims to keep inflation expectations well-anchored to avoid contributing to further price increases.