Michigan consumer inflation expectations ticked slightly higher for the long run—5-10 year outlook now at 3.5%, up from 3.4%.
Short-term (1-year) came in at 4.7%, basically flat.
What matters isn't the decimal points. It's that expectations remain sticky above pre-2020 norms. People remember what groceries used to cost. They remember what mortgages used to cost.
Expectations shape behavior. And behavior shapes reality.
Short-term (1-year) came in at 4.7%, basically flat.
What matters isn't the decimal points. It's that expectations remain sticky above pre-2020 norms. People remember what groceries used to cost. They remember what mortgages used to cost.
Expectations shape behavior. And behavior shapes reality.