U.S. consumer sentiment sinks to record low as inflation worries mount

ME News reported on May 22 (UTC+8) that U.S. consumer sentiment hit a historic low in May, as the Iran conflict and elevated fuel costs deepened inflation concerns. The University of Michigan's final May Consumer Confidence Index fell to 44.8. Long-term inflation expectations also moved higher, with consumers now projecting prices to rise at a 3.9% annual rate over the next five to 10 years, up from 3.5% in April and the highest in seven months. One-year inflation expectations rose to 4.8%. Gasoline prices have hovered near their highest levels since 2022, reinforcing anxiety over the cost of living and the lack of progress toward a peace agreement to end the war. The squeeze on household budgets, especially among low-income consumers, is seen as a potential headwind to future spending. Joanne Hsu, the survey's lead researcher, said cost of living remains consumers' top concern. She noted that 57% of respondents spontaneously cited high prices eroding their personal finances, up from 50% in the prior month. She added that consumers increasingly fear inflation will extend beyond fuel and that the upswing could persist for a prolonged period. (Jinshi) (Source: ODAILY)