FX.co ★ US 1-Year Inflation Outlook Hits 4-Month Low

Year-ahead inflation expectations in the United States, as measured by the University of Michigan’s consumer survey, declined for a second consecutive month to 4.2% in July 2026, according to preliminary estimates. This was the lowest reading since March and down from 4.6% in June. However, it remained significantly above the 3.4% level recorded in February, prior to the onset of the Iran conflict. Meanwhile, the five-year inflation outlook held steady at 3.3% in July, unchanged from June and marking a three-month low.