Consumer Sentiment Declines Despite Easing Inflation Expectations
8 hr 34 min ago
Consumer sentiment dropped for the fourth consecutive month in July.
The consumer sentiment index dipped slightly in July, declining more than two index points to 66.0, according to the University of Michigan’s Survey of Consumers. The survey showed similar drops in the indexes on current economic conditions and consumer expectations.
Despite the dour outlook and remaining concerns over current high prices, consumers’ expectations for the future of inflation eased.
Consumers’ expectations for inflation over the next year fell for the second consecutive month, declining to 2.9%. That’s similar to what consumers expected in the two years before the pandemic, said Joanne Hsu, Surveys of Consumers director.
-Terry Lane
Higher Wholesale Inflation Rises in June
10 hr 16 min ago
While data on consumer prices show inflation is easing, measurements of wholesale prices moved higher again in June, showing the Federal Reserve may still have more work to do before moving on rate cuts.
The Producer Price Index (PPI) increased month-over-month by 0.2% in June, while May’s wholesale inflation data was revised upward to reflect a flat reading, Bureau of Labor Statistics data showed Friday. According to a survey from the Wall Street Journal and Dow Jones Newswires, the reading was higher than economists’ expectations. The increase in wholesale prices largely came from services such as prices for vehicle wholesaling, car retailing and banking.
Read more about today’s PPI report here.
-Terry Lane
