Consumer confidence rises for fifth straight time, 1-year inflation expectations rise to 2.8%

Joanne Hsu, Director of Consumer Surveys at the University of Michigan, said the Consumer Confidence Index confirmed the data from earlier this month, rising for the fifth consecutive month to a record high since April 2024. Consumers believe that the economy has improved dramatically as inflation has slowed, but they do not feel they are in good hands; current sentiment is roughly halfway between the all-time lows reached in June 2022 and the pre-New Crown epidemic data. Inflation expectations for the year ahead rose to 2.8 per cent this month from 2.6 per cent last month, the first year-on-year increase since May, but within the 2.3-3.0 per cent range seen in the two years before the epidemic. Longer-term inflation expectations fell slightly to 3.0 per cent this month from 3.2 per cent last month, up slightly relative to the range of the two years prior to the epidemic.