US consumers’ long-term inflation expectations have reached their highest level in nearly three decades, according to the University of Michigan’s sentiment index. The rise is attributed to concerns over President Donald Trump’s tariffs, which are believed to translate into higher prices. Survey respondents who identify as Democrats are driving this trend, forecasting an annual increase of 3.5% in prices over the next five to ten years. This marks a significant shift from previous data, with the current rate surpassing its lowest point since 1995.
Source: https://www.bloomberg.com/news/articles/2025-02-21/us-consumer-sentiment-drops-as-long-run-inflation-views-rise