Bond.az -- Rising fuel costs are driving a wedge between how Americans of different income levels view future inflation, according to the latest University of Michigan consumer survey released Friday.
Overall consumer sentiment fell to a record low in the survey, while five-year inflation expectations climbed higher. The divergence in outlook between income groups has become increasingly pronounced.
Lower- and middle-income Americans are expressing darker views on future inflation as gasoline prices take a bigger bite out of household budgets. Higher earners, who have greater financial flexibility to absorb price increases, maintain more moderate inflation expectations.
This income-based split in inflation expectations first emerged prominently a year ago when President Trump announced tariffs on most of the world. The pattern is repeating as gas prices surge following the U.S.-Israeli attack on Iran at the end of February.
The survey results highlight how fuel prices disproportionately affect Americans across different economic strata, with those earning less feeling the pinch more acutely at the pump.
