FX.co ★ US Year-Ahead Inflation Expectations Fall in June

In June 2025, inflation expectations for the coming year in the United States dropped significantly to 5.1%, marking the lowest level in three months. This is a noticeable decline from May's 6.6%, which represented the peak since November 1981, as per the preliminary data from the University of Michigan Consumer Survey. At the same time, the five-year inflation outlook decreased for the second consecutive month, settling at 4.1% from the previous 4.2%. Although consumer concerns about the future impact of tariffs on inflation have eased slightly in June, inflation expectations continue to remain higher than the levels observed throughout the latter half of 2024. This reflects a broad sentiment that trade policies may continue to exert upward pressure on inflation in the upcoming year.