Story perspectives
Consumer Sentiment Rises, Yet Inflation Concerns Linger
1/24/2026
1 of 1
Story summary
- The University of Michigan's Consumer Sentiment Index rose to 56.4 in January from 54.0, indicating a modest improvement.
- Inflation expectations for the next year fell to 4.0%, the lowest since January 2025.
- Yet sentiment remains more than 20% lower than a year ago.
- Tariffs continue to pressure businesses by raising costs and reducing purchasing power.
- The Federal Reserve is expected to keep interest rates as inflation and labor markets persist.
