FX.co ★ US 1-Year Inflation Expectations Ease Further

Inflation expectations in the United States for the upcoming year have slightly decreased to 4.4% as per the University of Michigan's survey in July 2025, down from 5% the previous month, according to preliminary estimates. This marks the second successive decline from the 23-year peak of 6.6% observed in May, a reduction influenced by President Trump's decision to retract some of his stringent tariff threats against key trading partners. This shift mitigated fears that increased import costs would contribute to heightened consumer inflation. Concurrently, the five-year inflation outlook has also decreased for the third consecutive month, now standing at 3.6%.