{"id":937262,"date":"2021-10-29T12:43:40","date_gmt":"2021-10-29T16:43:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=937262"},"modified":"2021-10-29T12:43:42","modified_gmt":"2021-10-29T16:43:42","slug":"consumer-sentiment-drops-and-raises-risk-of-runaway-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/consumer-sentiment-drops-and-raises-risk-of-runaway-inflation\/","title":{"rendered":"Consumer Sentiment Drops and Raises Risk of Runaway Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fconsumer-sentiment-drops-and-raises-risk-of-runaway-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=937262&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/10\/GettyImages-1349775105-e1635450014796-640x335-1.jpg\" class=\"ff-og-image-inserted\" \/><\/div>\n<p class=\"subheading\">The reactions of American consumers to recent inflation raise the risk of escalating inflation in the year ahead, according to the chief economist of the University of Michigan\u2019s survey of consumer sentiment.<\/p>\n<p>\u201cThe declining resistance to price hikes among buyers will be joined by less resistance among sellers to hiking prices that will be justified by higher materials and labor costs.&nbsp;These reactions promote an accelerating inflation rate until a tipping point is reached when consumers\u2019 incomes can no longer keep pace with escalating inflation,\u201d <a href=\"http:\/\/www.sca.isr.umich.edu\/\">said<\/a> Richard Curtin on Friday.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>The University of Michigan\u2019s consumer sentiment index declined in October to a reading of 71.7 from last month\u2019s 72.8. A year ago, consumer sentiment stood at 81.8. Both the current conditions component and the expectations component declined in the month.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>\u201cThe positive impact of higher income expectations and the receding coronavirus has been offset by higher rates of inflation and falling confidence in government economic policies,\u201d Curtin said.<\/p>\n<p>Consumer expectations of inflation rose to their highest reading since 2008. Uncertainty about the year-ahead inflation rate rose to the highest level in forty years. Uncertainty about long term inflation rose to the highest level in a decade.<\/p>\n<p>\u201cNote that this was the first major spike in inflation uncertainty recorded outside of a recession,\u201d Curtin said.<\/p>\n<p>One-of-every five households mentioned declining living standards due to inflation. This worry was concentrated among older and poorer households.<\/p>\n<p>Curtin said that historically when consumer recognition of inflation sparks an escalation in price hikes, even a recession does not realign expectations.<\/p>\n<p>\u201cIn the past inflationary era, one recession was insufficient to realign expectations; it required a series of boom-bust cycles, until the Fed\u2019s Volcker finally defeated inflation by raising interest rates to record levels,\u201d Curtin said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The reactions of American consumers to recent inflation raise the risk of escalating inflation in the year ahead, according to the chief economist of the University of Michigan\u2019s survey of &#8230;<\/p>\n","protected":false},"author":11,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-937262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/937262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=937262"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/937262\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=937262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=937262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=937262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}