“Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines,” said Joanne Hsu, the survey’s director, in a commentary released with the index on Friday. The survey of at least 500 U.S. households showed that inflation is still a “paramount” concern, as consumers not only expect prices to remain high over the year ahead, but also to continue ticking higher over the long-term. While the Federal Reserve has been raising interest rates in an effort to quell inflation, some economists worry that if consumers don’t lower their expectations about higher prices, regulators could be pressured to raise rates even more aggressively, crimping growth and making consumers gloomier still. Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
