FX.co ★ US 1-Year Inflation Outlook Revised Down

The University of Michigan's survey reported a modestly adjusted decrease in the US’s year-ahead inflation expectations to 4% for January 2026, marking the lowest level in a year and showing a slight decline from the initial estimate of 4.2%. This figure also represents a reduction from December's 4.2%. Concurrently, the five-year inflation forecast for January settled at 3.3%, slightly lower than the preliminary figure of 3.4%, yet still exceeding December's rate of 3.2%.