On April 25, Yahoo Finance reported that despite U.S. President Donald Trump’s announcement of a 90-day tariff suspension, inflation concerns among Americans are surging.
According to the University of Michigan’s consumer sentiment index, expected inflation for the coming year has jumped from 5% to 6.5%, the highest level in 44 years since 1981.
Just three months ago, consumers were anticipating inflation of only 3.3% for the following year.
Experts attribute this dramatic increase to the Trump administration’s aggressive use of tariffs.
The consumer sentiment index closed April at 52.2, marking the fourth consecutive month of declining investor confidence and reaching its lowest point since 1978.
A sharp drop in consumer sentiment typically leads to reduced spending. Yahoo Finance notes that this pullback in consumer activity, which drives 70% of the U.S. economy, could significantly dampen economic growth.
