US consumer sentiment rises sharply | Macro Markets

(Reuters) With signs of slowing inflation in the US, consumer sentiment is surprisingly improving. The measure of this rose in August to 55.1 points from 51.5 points in July, the University of Michigan announced Friday in its monthly survey. Economists polled by Reuters had expected only an increase to 52.5 points. DrThe situation assessment subscale declined, but consumers rated expectations for the coming months as much better than in the previous month.

According to the survey, citizens also expect the prices of goods and services to rise by 5.0% over the next twelve months. In July they still have value 5.2% estimated. Consumer prices rose 8.5% in July compared to the same month last year. In June, there was still a growth of 9.1%. The US Federal Reserve has recently battled spiraling inflation with unusually high interest rates. Want to continue next month? The prime rate is currently between 2.25 and 2.50%. Despite the slower rise in consumer prices recently, US Federal Reserve banker Mary Daly warned against “declaring victory” over inflation. It’s too early for that.

Richmond Fed President Thomas Barkin made it clear that it is still too early to say how much a September rate hike will be. He told CNBC that it was important to monitor the data closely in the coming weeks and form a judgment in time for the interest rate decision in the middle of next month. So far, the economy has coped well with rising interest rates.