People will shop at Whole Foods stores in New York City on February 3, 2025.
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Consumers were dramatically concerned about short-term inflation as President Donald Trump pushed aggressive tariffs on major US trading partners, a closely watched survey showed on Friday. Ta.
A University of Michigan Consumer Survey in February showed that respondents expected inflation to be 4.3% from the next year, a one-point jump from January, and the highest level since November 2023. .
Trump has postponed tariffs on Canada and Mexico, but the looming threat of passing through prices to consumers has sparked sentiment. China is collecting retaliatory tariffs following Trump’s move. The investigation window was run from January 21st to February 3rd, the day after Trump took office.
“Many consumers appear to be worried about high inflation coming back within the next year,” said Joan Huss, director of the survey. “This is the fifth and fifth time in 14 years, and we’ve seen such a big month’s rise (over 1 percent point) in our inflation forecast a year ago.”
Long-term expectations didn’t really conflict very much. The five-year outlook earned a gain of up to 3.3% and 0.1% points.
After the report, the stock price was lower, with the Dow Jones industrial average initially being off nearly 300 points.
“We’re looking forward to seeing you in the process of exploring the world,” said Robert Frick, corporate economist at the Navy Credit Union. “Even a small price hike will feel abruptly among millions, especially with top issues like food, shelters and transportation.”
The headline index fell to 67.8, a 4.6% decline in the month, and 11.8% fell 11.8% from the same month a year ago, resulting in overall lower optimism and concerns about inflation. The economists investigated by Dow Jones were looking for a 71.3 reading.
HSU said the overall decline in various survey indices reflects “aware that it may be too late to avoid the negative impact of customs policies.”
The current condition index is also 68.7 or 7.2% lower than in January, down 13.5% from a year ago. The expectations fell to 67.3, with a 2.9% and 10.5% drop in each.
