July 31, 2021

US consumers increasingly worried by rising inflation

US consumers were feeling less optimistic about the economy and increasingly worried about an accelerated rise prices, dimming their outlook for the recovery.

The University of Michigan’s consumer sentiment index, which fell to 80.8 from a reading of 85.5 in the previous month, took the shine off data released earlier on Friday showing a rebound in retail sales during June, propelled by strong demand at electronics stores, apparel outlets and restaurants.

“Rather than job creation, halting and reversing an accelerating inflation rate has now become a top concern,” said Richard Curtin, chief economist for the university’s surveys of consumers.

Shoppers are facing “sticker shock” on a range of goods from chicken to used cars. The consumer price index jumped 5.4 per cent in June from a year ago, a 13-year high, following a 5 per cent rise the previous month….

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