People shopped at a Whole Foods store in New York City on February 3, 2025.
Michael San Diego | Getty Images
Consumers are increasingly concerned about recent inflation as president Donald Trump A closely watched investigation on Friday showed off offensive tariffs on major U.S. trading partners.
this University of Michigan Consumer Survey February showed that respondents expected inflation to be 4.3% from now on, up from 1 percentage point in January and the highest level since November 2023.
Although Trump has delayed tariffs on Canada and Mexico, the threat to the passing of prices on consumers is imminent. China has imposed retaliatory tariffs after Trump’s action.
“Many consumers seem to be worried that high inflation will recover within next year,” said Joanne HSU, Director of the Bureau of Investigation. “This is only the fifth time in 14 years, and we’ve seen such a big deal in the full year inflation expectations,” said Joanne HSU. One month growth (one percentage point or higher). ”
Long-term expectations have not been reached much, with the five-year outlook rising to 3.3%, up 0.1 percentage point.
Stocks turn lower After the report, the Dow Jones industrial average initially fell by more than 100 points.
Concerns about inflation coincide with lower optimism as the headline index fell to 67.8, down 4.6% in a month and 11.8% from the same period last year. Economists surveyed by the Dow Jones have been looking for 71.3 readings.
The overall decline in various survey indices reflects that “it may be too late to avoid the negative effects of tariff policies”, said Beard.
The current conditional index also fell to 68.7, 7.2% lower than in January and 13.5% lower than a year ago. Expectations fell to 67.3, down 2.9% and 10.5% respectively.
