US consumer confidence fell to 44.8 in May, the lowest since 2022, with inflation expectations rising to 3.9% (5–10 years) and 4.8% (next year); high gas prices and cost-of-living concerns erode finances, especially for low-income households.Abstract: The University of Michigan’s final May Consumer Confidence Index dropped to 44.8 from 49.8 in April, missing expectations and reflecting weakened consumer sentiment amid inflation and geopolitical tensions. Consumers expect higher inflation: 3.9% over the next 5–10 years and 4.8% over the next year, signaling persistent price pressures even as the broader outlook remains uncertain. Gasoline prices remain near 2022 highs, fueling concerns about the cost of living and the sustainability of household spending. The survey also highlights a disproportionate impact on low-income households, with 57% of respondents citing the cost of living eroding finances, up from 50% the prior month.

AirdropBlackHole

2026-05-27 09:39:01

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On May 22, influenced by the Iran war, the US Consumer Confidence Index fell to a record low in May, with long-term inflation expectations significantly worsening. The final value released by the University of Michigan on Friday showed that the Consumer Confidence Index dropped from 49.8 in April to 44.8. This figure not only fell short of all market expectations but also was below the preliminary value of 48.2. The survey covered responses from April 21 to May 18. Consumers expect prices to rise at an annual rate of 3.9% over the next 5 to 10 years, up from 3.5% in April, marking a seven-month high. They also anticipate a 4.8% increase in prices over the next year. Gasoline prices are hovering near highs not seen since 2022, exacerbating concerns among the American public about the cost of living and the uncertainty surrounding the prolonged war. The impact of inflation on household budgets, particularly for low-income consumers, poses risks to the consumption outlook. Joanne Hsu, the survey director, stated in a release: 'The cost of living remains the primary concern, with 57% of consumers actively mentioning that high prices are eroding their personal finances, up from 50% last month.'

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Iran War Raises Inflation Concerns as US Consumer Confidence Index Hits Record Low

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