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Topic

Inflation Expectations

Survey-based measure of what consumers expect for future inflation, income, and economic conditions, watched as a gauge of inflation psychology.

Current stories

investOne report1 publisher

Americans call today's business conditions bad for the first time since September 2024

Americans' confidence fell 6.7 points to 81.9 in September on the Conference Board index, with more calling present business conditions bad than good. Two years of worry about the outlook now extend to how households grade today's economy and their own finances.

Publishers:qz.com

Reality

Evidence60
Adoption
Not scored
Hype gap+15
Incentives
Not scored
Confidence60
investOne report1 publisher

The Fed hiked what it pays on reserves into a bond market already heading for 5%

American Banker's column treats last week's increase in the rate the Fed pays on bank reserves as a move on perceptions. It also says central banks now look like they are following the bond market.

Reality

Evidence34
Adoption
Not scored
Hype gap+26
Incentives62
Confidence41
scienceOne report1 publisher

Consumers now judge today's economy as harshly as next year's

The University of Michigan's August survey puts sentiment at 51.7 with declines in every political group, and the current-conditions reading has fallen far enough to close its usual gap with expectations.

Publishers:phys.org

Reality

Evidence64
Adoption
Not scored
Hype gap−10
Incentives35
Confidence55
investOne report1 publisher

The 20-year is the constraint, and it is clearing at 5.26 percent

A July auction took $13bn at 5.163% with bid-to-cover of 2.64, dead on the ten-auction average. Duration keeps getting bought, just never at a better price.

Reality

Evidence33
Adoption
Not scored
Hype gap+18
Incentives
Not scored
Confidence29
investOne report1 publisher

Only 8% of Americans expect income to beat inflation, and pricing power is the casualty

The University of Michigan's share of consumers expecting income to outpace inflation has fallen from 18% in December 2024 to 8%. Plans that assume full cost pass-through look fragile.

Reality

Evidence28
Adoption
Not scored
Hype gap+38
Incentives48
Confidence30