Tariff Concerns Ease as US Inflation Expectations Drop to Three-Month Low

On June 13, Joanne Hsu, Director of the University of Michigan Consumer Survey, stated that the one-year inflation expectation in the United States fell from 6.6% last month to 5.1% this month. Long-term inflation expectations declined for the second consecutive month, dropping from 4.2% in May to 4.1%. Both indices are at their lowest levels in three months. Consumer concerns about the potential impact of tariffs on future inflation eased in June. Nevertheless, inflation expectations remain higher than levels seen in the second half of 2024, reflecting a widespread belief that trade policy may still lead to higher inflation in the coming year. (Jin10)