Gas prices and inflation drive consumer sentiment to historic lows

The University of Michigan’s October consumer sentiment index fell to the second-lowest level in records dating back to 1978, driven by high fuel costs and persistent inflation. Unleaded gasoline prices are currently 40% higher than a year ago, while diesel prices have risen nearly 75%, eroding purchasing power for households across the political spectrum.

Fifty-six percent of surveyed consumers spontaneously cited higher prices as a negative factor for their personal finances, a share that has increased for four consecutive months. While consumers with large stock portfolios reported little change in their financial burden, those with no or small holdings expressed growing concern, and 85% of respondents said it is a bad time to buy a home.

Inflation expectations for the coming year ticked up to 4.7%, moving further from the 3.4% recorded in February before the US-Israeli strikes on Iran. The Federal Reserve is scheduled to announce its next decision on borrowing costs on Wednesday, its final move before the midterm elections.

Read the full story at CNN.