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US Consumer Sentiment Hits Record Low as Iran War Drives Inflation Fears, CPI Jumps 0.9%
U.S. consumer sentiment fell to a record low in early April as inflation concerns tied to the Iran conflict intensified, while new data showed a sharp rise in consumer prices driven largely by gasoline costs.
- The University of Michigan’s preliminary sentiment index dropped to 47.6 in April from 53.3 in March, one of the lowest readings on record.
- Consumers expect inflation of 4.8% over the next year, up 1 percentage point from March, marking the largest increase in a year.
- Long-term inflation expectations rose to 3.4% over the next 5–10 years.
- The current conditions index fell to 50.1, while expectations dropped to their lowest level since 1980.
- The consumer price index rose 0.9% in March, the largest monthly increase in nearly four years, with gasoline accounting for nearly three-quarters of the gain.
- Annual inflation accelerated to 3.3%, the fastest pace since 2024.
- Gas prices climbed above $4 per gallon, reaching their highest levels since 2022 amid Middle East supply disruptions.
- Airfares rose 2.7% in March, while services prices excluding energy increased 0.2%.
- Real average hourly earnings rose 0.3% year-over-year, the slowest pace since 2023.
Relevant Companies
- Delta Air Lines ($DAL) – Warned of potential price increases tied to rising fuel costs.
- United Airlines ($UAL) – Indicated fares could rise up to 20% due to higher jet fuel prices.
Editor’s Note: This is a developing story. This article may be updated as more detail
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