More Americans fear inflation is going to get worse, according to preliminary February results from the University of Michigan Surveys of Consumers released Friday.

Consumer sentiment fell for the second month in a row and is down 5% compared with January to its lowest level since July 2024.

What You Need To Know

  • More Americans fear inflation is going to get worse, according to preliminary February results from the University of Michigan Surveys of Consumers released Friday

  • Consumer sentiment fell for the second month in a row and is down 5% compared with January to its lowest level since July 2024

  • Sentiment fell by similar amounts among Republicans, Independents and Democrats, and across all age and wealth groups, the survey found

  • Looking ahead one year, survey respondents expect inflation to jump to 4.3%; in January, they expected year-ahead inflation to increase to 3.3%

Sentiment fell by similar amounts among Republicans, independents and Democrats, and across all age and wealth groups, the survey found.

More consumers in February think prices for durable goods such as appliances are getting worse. They also expect their personal finances to worsen.

Looking ahead one year, survey respondents expect inflation to jump to 4.3%. In January, they expected year-ahead inflation to increase to 3.3%. 

The most recent rate of inflation in January was 2.9%, according to the U.S. Bureau of Labor Statistics. 

The consumer survey said inflation expectations have risen for two consecutive months and are at their highest level since November 2023. Its researchers noted that it is only the fifth time in 14 years that year-ahead inflation levels have risen so sharply. Inflation expectations are typically in the 2.3-3% range.