Source: Wall Street News
The final 1-year inflation forecast for US consumers was 2.9%, the lowest since December 2020. The forecast was 3.1%, the initial value was 3%; the final 5-year inflation forecast was 2.8%, the forecast was 2.9%, and the initial value was 2.9%. Michigan consumers' inflation expectations have given the Federal Reserve some relief.
According to data released on Friday, the final value of consumer confidence in Michigan in the US unexpectedly hit a three-year high in March, and short-term inflation expectations continued to fall, hitting a new low of more than three years.
According to specific data, the final value of the US Consumer Confidence Index in March was 79.4, the highest since July 2021. It was significantly better than the expected 76.5. The initial value was 76.5, and the value before February was 76.9. Among them, the final value of the current status index was 82.5, the expected value was 79.6, the initial value was 79.4, and the value before February was 79.4; the final value of the expected index was 77.4, the expected value was 74.7, the initial value was 74.6, and the value before February was 75.2.
In terms of inflation expectations that have received much attention in the market, the final value of the 1-year inflation forecast is 2.9%, the lowest since December 2020. The forecast is 3.1%, the initial value is 3%; the final value of the 5-year inflation forecast is 2.8%, the forecast is 2.9%, and the initial value is 2.9%.
Michigan consumers' inflation expectations have given the Federal Reserve some relief. Major US inflation data such as the CPI and PPI for February released this month all indicate that US inflation has clearly shown signs of rising since the beginning of this year, and price pressure has increased, making some economists pessimistic about the strength of the Federal Reserve's monetary easing this year.
Joanne Hsu, director of research at Michigan Consumer Confidence Data, said in a statement:
Inflation expectations have not only declined sharply, but inflation uncertainty has also declined sharply. As a result, consumers now generally believe that inflation will continue to slow in the short and long term.
Consumer perceptions of current personal financial conditions have risen to the highest level in more than two years, and their current outlook on the US economy has improved to the best level since July 2021.
Consumer confidence is affecting economic growth in the coming months. Pessimistic consumer sentiment will inhibit spending levels, thereby affecting economic recovery, while optimistic consumer sentiment will help the future economy.
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