UMich Consumer Inflation Expectations Crash To 12-Year Lows

Last month's 7-year high UMich consumer confidence came amid an Ebola scare and collapsing stock market...with surveyers actually noting their own surprise, "it would be surprising if recent declines in household wealth did not reverse some of the recent gains in optimism in the months ahead." So when November's preliminary print hit 89.4 - smashing expectations of 87.5 - to its highest since July 2007. For the first time since Dec 2011, UMich has risen 4 months in a row. The main driver of the exuberance is 'current conditions' which surged to 103 - the highest since Jul 2007 as the outlook barely budged. However, despite Bullard's comments about a rebound in inflation expectations, with 5Y expectations collapsing to the equal lowest since Sept 2002.

 

 

But inflation expectations collapsed...

 

Charts: Bloomberg