Consumer sentiment climbs, short-run implied inflation recedes for fourth straight month
Jan. 13, 2023 10:03 AM ETBy: Max Gottlich, SA News Editor2 Comments
- January University of Michigan Consumer Sentiment (Advance): 64.6 vs. 60.5 consensus and 59.7 in December.
- Expectations: 62.0 vs. 59.5 expected and 59.9 prior.
- Current conditions: 68.6 vs. 60.0 expected and 59.4 prior.
- Year-ahead inflation expectations retreated for the fourth straight month to the lowest since April 2021, sliding to 4.0% in January from 4.4% in December. Still, the reading remains well above the 2.3%-3.0% range seen in the two year before the pandemic, said Surveys of Consumers Director Joanne Hsu.
- Five-year implied inflation of 3.0%, meanwhile, increased from 2.90% in the prior month and remained elevated relative to the 2.2%-2.6% range seen in the two years prior to the pandemic.
- "Uncertainty over both inflation expectations measures remains high, and changes in global factors in the months ahead may generate a reversal in recent improvements," Hsu said.
- While consumer prices eased again in December, Richmond Fed President Tom Barkin said inflation is still too high and the Fed has more work to do.