Consumer Sentiment Deteriorates Amid Inflation Woes, Survey Shows

11:53 AM EDT, 10/24/2025 (MT Newswires) -- US consumer sentiment dropped for a third consecutive month as concerns over high prices persisted, final survey results from the University of Michigan showed Friday.

The main sentiment index slipped to 53.6 this month from 55.1 in September. The consensus was for a 54.5 reading in a Bloomberg-polled consensus.

"Consumers perceive few material changes in economic circumstances from last month; inflation and high prices remain at the forefront of consumers' minds," Surveys of Consumers Director Joanne Hsu said in a statement.

The gauge for current economic conditions dropped 3% to 58.6 in October, declining for a third month in a row, while the expectations measure declined 2.7% to 50.3, the lowest in five months, the survey showed.

Year-ahead inflation expectations ticked down to 4.6% in October from 4.7% last month. The five-year outlook advanced to 3.9% from 3.7%, the highest in four months, according to the survey.

"Inflation uncertainty -- as measured by the interquartile range of expectations -- ticked up for both time horizons this month," Hsu said.

Official data released Friday showed US consumer prices rose less than expected in September, while core inflation surprisingly ticked down, reinforcing expectations for another interest rate cut next week. Still, both annual headline and core inflation, both at 3% last month, remain above the Federal Reserve's 2% target.

The September consumer price index report, which was originally scheduled for release on Oct. 15, was delayed due to the ongoing government shutdown.

Recent Conference Board data showed that US consumer confidence deteriorated last month to the lowest level since April amid concerns about the labor market's softness.

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