Useful information

Prime News delivers timely, accurate news and insights on global events, politics, business, and technology

The feeling of the consumer of the United States is immersed in concerns about inflation prices and tariffs

The feeling of the consumer of the United States decreased more than expected at February to the lowest level in more than a year, while inflation expectations increased amid the uncertainty around the fee plans of President Donald Trump.

Consumer surveys at the University of Michigan launched on Friday their index of consumption feelings that fell from 71.7 in January to 64.7 in February. That is the lowest reading since November 2023 and was weaker than the preliminary reading of 67.8, which was the expectation of consensus among the economists surveyed by Reuters.

The surveys of the consumer director, Joanne Hsu, said that although the feeling fell for both the democrats and the independents, did not change for the Republicans, which she wrote reflected “the continuous disagreements about the consequences of the new policies economic “.

Household inflation expectations also increased to 4.3% in next year, the highest level since November 2023 and an acute increase of 3.3% last month.

Fed officials indicate the increase in inflation risks in the midst of uncertainty about Trump’s policies, tariffs

Objective buyers

Consumer confidence collapsed more than expected in February. (Victor J. Blue / Bloomberg through Getty Images / Getty Images)

HSU added that the current reading of inflation expectations is “now well above the range of 2.3-3.0% seen in the two years prior to the pandemic.”

In the next five years, households said they expect inflation to extend to 3.5%, which was the highest since 1995 and an increase of 3.2% in January. HSU pointed out that this was the largest month of month in the metric since May 2021.

“For short and long -term inflation expectations, this month’s increases were widespread and seen between income and age groups. Inflation expectations increased this month for both independents and democrats; they fell slightly for Republicans “Hsu wrote.

The fed minutes show tariffs with concerns about greater inflation

Woman purchases of groceries

Household inflation expectations jumped at the highest level since November 2023. (Gabby Jones / Bloomberg through Getty Images / Getty Images)

The report occurs when inflation has stubbornly remained above the objective of 2% of the Federal Reserve in recent months. The consumer price index, a popular inflation meter, arrived hotter than expected at 3% annually for January.

President Trump’s rate plans have taken shape during his first month in office. He announced 10% of tariffs in China imports, in addition to existing taxes, which since then have entered into force. Trump also delayed 25% rates in Canada and Mexico until at least in early March after the two countries announced border security measures.

Get the Fox business on the fly by clicking here

He has also announced 25% tariffs on imported steel and aluminum, in addition to requesting a reciprocal tariff plan that coincide with US tariffs with taxes by other countries in US exports, which are expected to be implemented after the end of a study through administration in April.

Reuters contributed to this report.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *