The consumer climate has unexpectedly reduced them to the lowest level in the last eight months for the month of July this year, as high prices have continued to burden Americans’ views on their finances and economy in general. The University of Michigan preliminary measurement for the consumer climate indicator retreated to 66 units in July, compared to the final measurement of 68.2 in June. Economists who participated in a Bloomberg survey had predicted a preliminary measurement at 68.5 points. Consumer expectations for inflation next year decreased for a second month, to 2.9%, according to current figures (12.7.2024). They saw the cost increase at an annual rate of 2.9% over the next 5 to 10 years, also taking a fall compared to last month. The University of Michigan also published a special report on inflation expectations, a point of recent concern among economists. He found that the deviation between the average and the median long-term expectation is due to a small number of consumers and “it is unlikely to reflect a fundamental deterioration in consumer expectations for inflation”. The figures earlier this week showed that inflation cooled widely in June, with a measure of underlying price trends recording the lowest progress since 2021. This strengthened the assumption that the US Federal Reserve (Fed) would reduce interest rates in the coming months. The data also provided some welcome relief to consumers who felt pressured by the post-cobular surge in inflation. Prices of goods took the lead, actually decreasing for most of the previous year. At the same time, the labour market, which has fueled consumer spending, showed signs of cooling, a trend that could help reduce the climate if it continues. Unemployment rose to 4.1% in June, the highest point since the end of 2021.