NEW YORK, 26 May. - (ANA) - The University of Michigan index fell to 44.8, its lowest reading since the survey began in 1952, alongside near-historic gas prices. 

 

The one-year inflation outlook also ticked up to 4.8% from April's 4.7%. Lower-income households were most affected.

 

It was also driven by surging gasoline prices linked to supply disruptions in the Strait of Hormuz and deepening concern that inflation will spread well beyond fuel costs.

 

On the inflation expectations front, the one-year outlook ticked up to 4.8% from April's 4.7%, while the longer-range measure — spanning five to ten years — jumped to 3.9% from 3.5%, a seven-month highg. Both readings are well above the 2.8% to 3.2% range seen throughout 2024.

 

Political views influenced the drop in sentiment. For independents and Republicans, confidence fell to its lowest level since the current administration began. Among Republicans, long-term inflation expectations have more than doubled since February 2025. Lower-income households and people without a college degree saw the biggest declines, showing they are more affected by rising fuel and everyday costs.    - (ANA) -

 

AB/ANA/26 May 2026 - - -