The University of Michigan index stood at 82.9 points in May, virtually unchanged from the preliminary estimate released in mid-May.
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Americans are worried about inflation over fears their purchasing power may decline, and that lowered consumer confidence in May, according to the final estimate from the University of Michigan survey released on Friday.
The index stood at 82.9 points in May, virtually unchanged from the preliminary estimate published in mid-May.
“A record share of consumers have reported higher prices for a wide range of purchases, including housing, vehicles and household goods,” said Richard Curtin, the economist in charge of this survey, cited in the press release.
In detail, the perception of current economic conditions plunges 8% compared to April, to 89.4 points, and the outlook is also down, 4.7%, to 78.8 points.
Inflation in the United States accelerated in April, to 3.6% year on year, its largest increase since 2007, according to the PCE index also released Friday.
Despite the reassuring remarks of many officials, such as those of the Fed, the Secretary of the Treasury, Janet Yellen, or the IMF, who assure that the rise in prices is linked to transitory factors and should only last a few months, the fears are strong about strong and lasting inflation.
The Federal Reserve (Fed) is aiming for 2% inflation in the long term, and believes, in order to reach this target, that it will have to be exceeded for a while, without immediately tightening its monetary policy because it could slow down the recovery.
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