US Consumers’ Long-Term Inflation Expectations Dip to Lowest Since Mid-2021

[PNWest]

Bloomberg - Are you a robot?

• Price expectations for next five to 10 years edge down to 2.8%
• University of Michigan sentiment index rises to 59.5

US long-term inflation expectations fell to the lowest in more than a year in early September, an encouraging sign for the Federal Reserve as it tries to keep views anchored.

Consumers expect prices will climb at an annual rate of 2.8% over the next five to 10 years, the lowest since July 2021, according to a survey from the University of Michigan. They see costs rising 4.6% over the next year, the lowest since last September, data Friday showed.

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Good news or false hopes? I'm thinking the former.

 

[Bernard_Fokke]

Nah, Herr buydems propaganda team is just blowing smoke up your bum

 

[PNWest]

Nah, Herr buydems propaganda team is just blowing smoke up your bum

Either that or you are not very smart. It's a safe bet that it is the latter.

The article is talking about consumer expectations not pronouncements from the Biden administration.

 

[ObamacareForever]

Bloomberg - Are you a robot?

• Price expectations for next five to 10 years edge down to 2.8%
• University of Michigan sentiment index rises to 59.5

US long-term inflation expectations fell to the lowest in more than a year in early September, an encouraging sign for the Federal Reserve as it tries to keep views anchored.

Consumers expect prices will climb at an annual rate of 2.8% over the next five to 10 years, the lowest since July 2021, according to a survey from the University of Michigan. They see costs rising 4.6% over the next year, the lowest since last September, data Friday showed.

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Good news or false hopes? I'm thinking the former.

Inflation is somewhat driven by the expectation of inflation.
If businesses are expecting inflation in the cost of production, then they raise prices of their goods/services. If businesses are not expecting inflation, they will keep prices stable.

Inflation expectations dropping is a good thing.