Short-term inflation expectations among U.S. consumers softened in July 2026, according to the latest University of Michigan survey data. The 1-year inflation outlook slipped to 4.2%, down from 4.6% in June 2026.
The decline suggests consumers are seeing some relief in anticipated price pressures, which could be significant for policymakers and markets closely tracking the trajectory of inflation sentiment. While still elevated relative to pre-pandemic norms, the July reading points to a modest cooling in near-term inflation expectations as of the latest update on 17 July 2026.
