Positive feelings abou💧t where inflation is heading sent a closely watched gauge of consumer attitudes to its highest level since🦋 July.

The final December reading of the University of Michigan🌳 Indexꦉ of Consumer Sentiment (MCSI) jumped to 69.7, a 13.7% increase from November and above economists’ forecasts. It was the first rise after four months of declines and erased all those losses.

All five components used to determine the MCSI were up, which has occurr♌ed in only 10% of the survey’s readings since 1978, said Survey of Consumers Director Joanne Hsu.

The Index of Consumer Expectations was up 18.7% to 67.4, w꧙hile the measure of current economic conditions added 7.3% to 73.3.

The key factor in the MCSI advance was the outlook on where pr🉐ices are heading, Hsu said.ꦦ The survey found consumers felt annual inflation a year from now would be 3.1%, down from 4.5% in November. The expectation for five years from now dropped to 2.9% from 3.2% last month. 

She said the MCSI was now just below the midpoint between the pre-pandemic reading and the all-time low set in June 2022.