Nearly 90 percent of Americans expect prices to keep rising over the next year, according to a recent consumer survey, reflecting persistent inflation anxiety despite some government efforts to address cost pressures.
The finding aligns with other measures showing household pessimism during a period of elevated gasoline prices, tariff-related cost increases and geopolitical uncertainty from the Iran war. U.S. consumer inflation reached 3.8 percent in April, its highest reading in nearly three years.
Expectations of future inflation can themselves influence behavior, as workers demand higher wages and businesses preemptively raise prices. The University of Michigan’s consumer sentiment index also hit a record low for May, underscoring the gap between market rallies and household assessments.
Economists said energy costs have been the primary near-term driver of both actual inflation and expectations, with regular gasoline averaging well above pre-war levels. Until fuel prices ease materially, surveys suggest Americans will remain skeptical that inflation is under control regardless of official policy actions.
The University of Michigan consumer sentiment index also reached a record low for May as households confronted gasoline above 4.50 dollars per gallon nationally. April consumer price inflation of 3.8 percent outpaced wage growth for the first time since 2023. Persistent inflation expectations can influence wage negotiations and corporate pricing decisions.
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Sources:
https://dailycuratednews.substack.com/p/news-headlines-may-22-2026