U.S. consumer sentiment drops in January as inflation fears rise, contrary to forecasts.

U.S. consumer sentiment slightly declined in January, with the University of Michigan's index dropping to 73.2 from 74.0 in December. Despite an improvement in current economic conditions, long-term inflation expectations surged to 3.3%, the highest since 2008, raising concerns about future pricing pressures. This increase in inflation expectations has led to a drop in consumer expectations to 70.2, contrary to economists' forecast of a slight rise.

January 10, 2025
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