Consumers are increasingly concerned about the further development of inflation in the coming year.
The latest consumer confidence survey from the University of Michigan shows that consumers expect inflation to be 2.9% a year from now, up from last month’s forecast of 2.6%. December’s figures are the highest in six months, but fall within the range of 2.3% to 3% in the two years before the pandemic.
However, expectations for long-term inflation have risen, from 3.2% the month before to 3.1%.
The general consumer confidence index stood at 74, compared to 71.8 in November.
Overall, Joanne Hsu, director of Surveys of Consumers, noted that consumers’ views on inflation varied depending on political party.
“Democrats expressed concern that expected policy changes, particularly rate increases, would lead to a resurgence in inflation,” Hsu said in the release. “The Republicans disagreed; they expect the next president to usher in a massive slowdown in inflation.”
Also in this month’s data, the survey showed that purchasing conditions for durable goods improved sharply, increasing current economic conditions by more than 20%.
“This increase in durable goods was not a sign of strength, but was mainly due to the perception that purchasing durable goods now would allow buyers to avoid future price increases,” Hsu said.
