Under the impact of the oil price crisis, the mood of US consumers deteriorated surprisingly significantly in April. The Consumer mood index fell to 47.6 pointsas the University of Michigan announced. In March it was 53.3.
Economists surveyed by the Reuters news agency had only expected a decline to 52.0 points. The increase in oil prices as a result of the Iran war has caused consumer prices to rise USA catapulted upwards, The prices for petrol and diesel have also risen sharply.
Key interest rate between 3.50 and 3.75 percent
The US Federal Reserve, which is supposed to ensure stable prices and promote full employment, recently left the key interest rate in the range of 3.50 to 3.75 percent. Fed Chairman Jerome Powell has signaled a continued wait-and-see approach to monetary policy. Longer-term inflation expectations appear to be stable despite the current energy shock.
However, consumers’ inflation expectations for the next twelve months, as determined by the University of Michigan survey, are likely to give Powell a headache: they rose by a full point to 4.8 percent in April compared to the previous month.
This is the strongest monthly increase since April 2025. Consumers’ inflation expectations for the next five years are 3.4 percent. In March, consumers had estimated a value of 3.2 percent.
You can read all developments in the Iran war in our live blog.