Consumers all over the nation are feeling better about inflation, prodded by lower prices at the gas pump, which helped improve their overall sen🌄timent about the economy.

The Michigan Consumer Sentiment Index hit 69.4 in the preliminary reading for December, moving up 13% from November’s final reading of 61.3. Economists expected a more modest improvement to 62.4.

Some of the improvement can be attributed to better expectations on inflation, which fell to 3.𝐆1% from 4.5% for the year ahead, wrote  Joanne Hsu, the Director of the University of Michigan Survey of 𓂃Consumers. 

“There was a broad consensus of improved sentiment across age, income, education, geography, and political identification,” wrote Hsu, who noted that this month’s reading reversed the 澳洲幸运5官方开奖结果体彩网:past four months of decline. 

Inflation Expectations Near Pre-Pandemic Levels

The report comes ahead of next week’s Federal Open Market Committee meeting, where it is widely expected the governing body will keep intere🦄st rates at 22-year highs of 5.25% to 5.5%. Inflation has moderated recently, 澳洲幸运5官方开奖结果体彩网:falling to 3%🐠 in the latest reading, and the F♍ederal Reserve will look at inflation expectations as it deliberates over interest rate levels.🔜

Recent drops in gas prices, 澳洲幸运5官方开奖结果体彩网ꦓ:which are now lower than $3 in much of the nation, have helped contribute to 🌜the slowing inf𓂃lation.

"A falling rate of inflation finally caught traction in consumers’ outlook, probably led by dropping gas prices,” said Robert Frick, corporate economist with Navy Federal Credit Union. “And as the price of durable goods falls, consumers are feeling better about the cost of things like appliances and electronics."

The drop in year-ahead inflat💟ion expectations put it back near pre-pandemic levels, while consumers also expect inflation to be 2.8% over the next five years, down from the prior month’s 3.2% expectation, and still slightly over pre-pandemic levels. 

The survey showed broad optimism over economic improvements, with the survey finding consumers' take on current economic conditions improved to an index reading of 74.0 from November’s 68.3.

“All five index components rose this month, led by surges of over 24% for both the short and long-run outlook for business conditions,” Hsu wrote.