US Consumers Long-Run Inflation Views Rise to Highest Since 1995

US consumers’ long-term inflation expectations rose to the highest level in almost three decades on concerns President Donald Trump’s tariffs will translate into higher prices.

Consumers expect prices will climb at an annual rate of 3.5% over the next five to 10 years, according to the final February reading from the University of Michigan. The rate is the highest since 1995, based on data compiled by Bloomberg, and was almost entirely driven by views among survey respondents who are Democrats.

Partly as a result, the consumer sentiment index dropped to 64.7 from 71.7 in January — lower than ...