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A survey released on Friday showed that U.S. consumers have new fears about inflation, which could hamper some hopes of a swift recovery, a report said.
The Financial Times, citing the University of Michigan’s consumer sentiment index, reported that some customers are facing “sticker shock” when trying to buy everyday items like chicken and produce. The report said prices hit a 13-year high after jumping 5.4 percent in June.
Jay Powell, the Federal Reserve chair, assured Congress last week that there would be a response if inflation surges. He said he is aware of the concern and “it is really going through the economy and through every business.”
The FT reported that consumer sentiment dropped about 5 percent to 80.8 from the previous month.
“Rather than job creation, halting and reversing an accelerating inflation rate has now become a top concern,” Richard Curtin, the chief economist of the University of Michigan’s survey, said. He said that the jump in prices has put added strain on middle-income families.
The paper said retail sales rose by 0.6 percent in June, but there have been fluctuations in consumer spending. There is concern among economists that inflation could have “masked” lower actual sales activity.
TREND FORECAST: The reality of inflation, despite what the central bank is selling, will force the Feds to raise interest rates… which we believe The Street already knows and expects. Thus, prepare for the 2021 Bear Market, coming soon to a country near you!
Last year, the Trends Journal was among the first publications to forecast that equities and economies would come tumbling down when inflation moved sharply higher.