High Prices Are Eroding Living Standards

10.16.23 - High Prices Are Eroding Living Standards

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Record 49% Of Americans Say "High Prices Are Eroding Living Standards"; UMich - ZeroHedge

UMich inflation expectations soared in preliminary October data, with the year-ahead inflation expectations rose from 3.2% last month to 3.8% this month. The current reading is the highest since May 2023 and remains well above the 2.3-3.0% range seen in the two years prior to the pandemic. Long-run inflation expectations edged up from 2.8% last month to 3.0% this month...

All cohorts saw decreases in sentiment...

Meanwhile, the headline consumer sentiment gauge plunged to 63.0 (67.1 exp) from 68.1, led by a big drop in expectations (from 66.0 to 60.7)

UMich's Joanne Hsu noted, "assessments of personal finances declined about 15%, primarily on a substantial increase in concerns over inflation, and one-year expected business conditions plunged about 19%."

About 49% of consumers reported that high prices are eroding their living standards, up substantially from 39% last month and matching the all-time high last recorded in July 2022.