US consumer sentiment plunges on worries over prices from inflation and tariffs

America The mood of the consumer In February, more than a year, more than the lowest level, the expectations of inflation increased in the conditions of disparity related to President Donald Trump tariff plans.

The University of Michigan University of Consumers Friday has released its consumer mood indicator, which dropped from 71.7 to February 64.7 in January. It was the lowest reading from November 2023 and was weaker than the preliminary reading of 67.8, which was the expectations of the agreement between the economists who asked “Reereers”.

Consumer Director Joan ASu said that the sentiment has fallen for both Democrats and independence, it has unchanged for the Republicans, which he wrote, reflects the “consequences of the new economic policy.”

Households Inflation expectations Compared to the next year, the highest level of 2023 and the sharp rise in the last month has increased by 4.3%.

Federation officials grow the risks of inflation due to the policy of trump cards on tariffs

Consumer confidence in February was more than expected. (Victor J. Blue / Bloomberg Via Getty Images / Getty Images)

HSU added that the current reading of inflation expectations “now exceeds the range of 2.3-3.0%, which is seen before the epidemic.”

Over the next five years, households say that inflation will operate by 3.5%, which has been the highest since 1995 and the growth of January. The HSU noted that May 20, May 20, is the largest month of the month of the month of the month.

“Two short and Long-term inflation expectationsThe additions of this month are common and seen between income and age groups. Inflation has increased for independence and democrats this month. They have fallen a little for the Republicans, “HSU wrote.

Fed flashing tariffs contribute to higher inflation

Inflation expectations from November 2023 have jumped the highest level. (Gabby Jones / Bloomberg Getty Images / Getty Images)

The report comes as inflation remains a 2% target of the Federal Reserve above in recent months. The consumer price index presented, the popular inflation meter Hotter than expected by 3% on an annual monthly basis.

President Trump The tariff plans have been formed during his first month. He announced a 10% tariff for importing from China to the top of the existing charges, which came into force. Trump also postponed 25% tariffs for Canada and Mexico, up to both countries have published border security measures.

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He also stated 25% tariffs imported Steel and aluminumAs well as a call for a mutual tariff plan, which will consider us tariffs for those forced by other US exports, which are scheduled to be implemented after the study by the administration.

Reuters contributed to this report.