U.S. consumer confidence hits record low amid inflation concerns

Odaily Planet Daily News Due to the Iranian war, the U.S. consumer confidence index fell to its lowest point in history in May, and long-term inflation expectations also deteriorated significantly. Data showed that the University of Michigan's final consumer confidence index for May fell to 44.8. Consumers expect prices to rise at an annualized rate of 3.9% over the next five to ten years, up from 3.5% in April, the highest in seven months. They also expect prices to rise by 4.8% over the next year. Gas prices continue to hover near their highest levels since 2022, exacerbating Americans' concerns about rising living costs and the failure to reach an agreement to end the war. The impact of inflation on household budgets, especially for low-income consumers, poses risks to future consumption prospects. Joanne Hsu, the survey's director, said: "The cost of living issue remains the top concern. 57% of respondents proactively noted that high prices are eroding their personal finances, up from 50% last month." She said: "The key point is that consumers seem to be worried that inflation will not only spread beyond fuel prices to other areas, but that this upward trend may even persist for a long time to come." (Jinshi)