Economy — Banking

Inflation Fears Send Consumer Sentiment Tumbling In September

Americans’ one-year inflation expectations climbed to 4.6%, up from 4% previously and matching the highest reading recorded in June

, and TIPP Staff

September 11, 2026 . 11:32 AM

2 min read

The U.S. consumer sentiment plunged in September as Americans grew increasingly concerned about inflation and rising energy costs, according to the University of Michigan’s Survey of Consumers.

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The survey’s headline index fell 7.5% from August to 47.8, marking the second-lowest reading since records began in 1952. The report said expectations for personal finances and business conditions deteriorated sharply amid higher fuel prices and ongoing trade tensions.

Americans’ one-year inflation expectations climbed to 4.6%, up from 4% previously and matching the highest reading recorded in June. The survey’s expectations index dropped 11.1%, while its current conditions measure declined 1.9%.

Meanwhile, Bureau of Labor Statistics data showed gasoline prices rose 3.9% in August and were 27.4% higher than a year earlier. Fuel oil prices increased 10.1% during the month and 52% annually.

The report said markets increasingly expect the Federal Reserve to raise interest rates next week, with rate-hike odds surpassing 85% after inflation remained well above the Fed’s 2% target.

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