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Yahoo
21 hours ago
- Business
- Yahoo
Sticker shock: Are American consumers learning to live with inflation?
American consumers may be learning to live with inflation. A long-running Gallup poll shows a steep drop in the share of Americans who name inflation as their biggest financial problem. Only 29% of consumers listed inflation as their top financial concern in April, down from 41% in April 2024. It's the lowest reading on the annual survey since 2021. Another recent survey, from the Ipsos Consumer Tracker, found fewer Americans think prices are rising. The share of consumers who said their household expenses are higher than a year ago slipped from 68% in February to 58% in May. Other surveys suggest, however, that inflation remains very much on consumers' minds. In a CBS News poll, taken in late May, 76% of Americans said their income wasn't keeping up with inflation. And a University of Michigan consumer survey, updated May 30, found that Americans expect prices to rise by 6.6% over the next year, twice the annual inflation rate they predicted a year ago. Economists say American consumers harbor complex feelings about inflation. On one hand, consumers have consistently cited rising prices as a top household concern, a sentiment that dates back to the dawn of the COVID-19-era inflation crisis in 2021. On the other hand, through four inflationary years, Americans have continued to spend. Consumer spending has risen steadily from 2021 through early 2025, despite rising prices. (Consumer spending slowed slightly in April, according to data released May 30.) 'We've had a remarkably robust consumer for the past 3 ½ years, when we've had a lot of inflation,' said Aditya Bhave, senior U.S. economist at Bank of America. Americans have had plenty of time to get used to inflation. The annual rate has hovered above 2% for every month since February 2021, federal data shows. The Federal Reserve sets 2% as its goal for a healthy inflation rate. The sky-high inflation of 2021 and 2022 is long gone. The annual rate hasn't topped 4% since early 2023. In April 2025, inflation registered at an unremarkable 2.3%. 'We don't have the super-high, 6%, 7% and 8% inflation numbers anymore,' said Yiming Ma, an associate professor at Columbia Business School. 'If you listen to the news, it's not as much about inflation anymore.' For much of this year, other financial worries have dominated the financial headlines: Tariffs. Turbulent stocks. Instability at Social Security, the IRS and other federal agencies. Potential Medicaid cuts. Many of those fears peaked in April, the month President Donald Trump rolled out sweeping import tariffs. 'There's a lot of moving parts that were affecting consumers attitudes toward the economy in April,' said Bill Adams, chief economist at Comerica Bank. Adams notes that Gallup polled consumers about financial worries in early April, just as the tariff drama was unfolding. Tariffs, of course, are widely presumed by economists to cause inflation. In the University of Michigan Surveys of Consumers, inflation fears spiked dramatically as the Trump administration pursued tariffs. In January, the average consumer expected prices to rise 3.3% in the next year. By May, the figure had risen to 6.6%. That data point, too, is complicated – and highly politicized. Democrats expect prices to rise by 8% over the next year, according to Michigan survey data from April. Republicans expect them to rise by 0.4%. The figures are three-month averages. The disparity suggests Democrats and Republicans occupy separate realities. Economists say it illustrates that one party expects Trump's economic policies to succeed, while the other expects them to fail. 'There's a huge amount of partisan influence when you see consumer sentiment,' Stephen Juneau, senior U.S. economist at Bank of America Securities, told USA TODAY in March. Americans seem largely united, however, in their disdain of higher prices. Consumer prices are about 24% higher now than in February 2020, at the dawn of the pandemic, Bankrate reports. 'The cumulative increase in prices over the last half-decade has been much higher than it was from 2015 to 2020,' said Adams of Comerica. 'And I think that is what has contributed to this sense of frustration about inflation among American consumers.' Before the current inflation outbreak, America had not experienced an inflation crisis in 40 years. The 8% annual inflation rate in 2022 was the highest figure recorded since 1981, according to Federal Reserve data. American consumers may have learned to live with inflation. Here's what it would take for them to forget about it, according to Adams and other economic experts: The Fed aims for a target of 2% annual inflation: A level so low that consumers tune it out. If the annual inflation rate reaches that range and stays there, the Fed reasons, most Americans won't notice it. 'I think you'd need an extended period of somewhat lower inflation, in the low 2s or high 1s, along with wages that are outpacing that inflation,' said Bhave of Bank of America. If inflation eases to 2%, the Fed's target rate, it might still take many months for consumers to adjust to permanently higher prices. 'It is not long ago that you can remember what eggs cost in 2021 or 2021, compared to now,' said Alex Jacquez, chief of policy and advocacy at the progressive Groundwork Collaborative. Consumer prices spiked dramatically in 2021 and 2022. Prices continued to rise in 2023 and 2024, but not so sharply. If inflation continues to cool, and wages continue to rise, Jacquez and other said, the day will come when prices no longer seem so high. 'I think we could see consumers adjusting to prices as they are today, if we see the rate of inflation going to where it used to be,' Adams said. 'But it'll take time.' This article originally appeared on USA TODAY: Are Americans learning to live with inflation? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Sticker shock: Are American consumers learning to live with inflation?
American consumers may be learning to live with inflation. A long-running Gallup poll shows a steep drop in the share of Americans who name inflation as their biggest financial problem. Only 29% of consumers listed inflation as their top financial concern in April, down from 41% in April 2024. It's the lowest reading on the annual survey since 2021. Another recent survey, from the Ipsos Consumer Tracker, found fewer Americans think prices are rising. The share of consumers who said their household expenses are higher than a year ago slipped from 68% in February to 58% in May. Other surveys suggest, however, that inflation remains very much on consumers' minds. In a CBS News poll, taken in late May, 76% of Americans said their income wasn't keeping up with inflation. And a University of Michigan consumer survey, updated May 30, found that Americans expect prices to rise by 6.6% over the next year, twice the annual inflation rate they predicted a year ago. Economists say American consumers harbor complex feelings about inflation. On one hand, consumers have consistently cited rising prices as a top household concern, a sentiment that dates back to the dawn of the COVID-19-era inflation crisis in 2021. On the other hand, through four inflationary years, Americans have continued to spend. Consumer spending has risen steadily from 2021 through early 2025, despite rising prices. (Consumer spending slowed slightly in April, according to data released May 30.) 'We've had a remarkably robust consumer for the past 3 ½ years, when we've had a lot of inflation,' said Aditya Bhave, senior U.S. economist at Bank of America. Americans have had plenty of time to get used to inflation. The annual rate has hovered above 2% for every month since February 2021, federal data shows. The Federal Reserve sets 2% as its goal for a healthy inflation rate. The sky-high inflation of 2021 and 2022 is long gone. The annual rate hasn't topped 4% since early 2023. In April 2025, inflation registered at an unremarkable 2.3%. 'We don't have the super-high, 6%, 7% and 8% inflation numbers anymore,' said Yiming Ma, an associate professor at Columbia Business School. 'If you listen to the news, it's not as much about inflation anymore.' For much of this year, other financial worries have dominated the financial headlines: Tariffs. Turbulent stocks. Instability at Social Security, the IRS and other federal agencies. Potential Medicaid cuts. Many of those fears peaked in April, the month President Donald Trump rolled out sweeping import tariffs. 'There's a lot of moving parts that were affecting consumers attitudes toward the economy in April,' said Bill Adams, chief economist at Comerica Bank. Adams notes that Gallup polled consumers about financial worries in early April, just as the tariff drama was unfolding. Tariffs, of course, are widely presumed by economists to cause inflation. In the University of Michigan Surveys of Consumers, inflation fears spiked dramatically as the Trump administration pursued tariffs. In January, the average consumer expected prices to rise 3.3% in the next year. By May, the figure had risen to 6.6%. That data point, too, is complicated – and highly politicized. Democrats expect prices to rise by 8% over the next year, according to Michigan survey data from April. Republicans expect them to rise by 0.4%. The figures are three-month averages. The disparity suggests Democrats and Republicans occupy separate realities. Economists say it illustrates that one party expects Trump's economic policies to succeed, while the other expects them to fail. 'There's a huge amount of partisan influence when you see consumer sentiment,' Stephen Juneau, senior U.S. economist at Bank of America Securities, told USA TODAY in March. Americans seem largely united, however, in their disdain of higher prices. Consumer prices are about 24% higher now than in February 2020, at the dawn of the pandemic, Bankrate reports. 'The cumulative increase in prices over the last half-decade has been much higher than it was from 2015 to 2020,' said Adams of Comerica. 'And I think that is what has contributed to this sense of frustration about inflation among American consumers.' Before the current inflation outbreak, America had not experienced an inflation crisis in 40 years. The 8% annual inflation rate in 2022 was the highest figure recorded since 1981, according to Federal Reserve data. American consumers may have learned to live with inflation. Here's what it would take for them to forget about it, according to Adams and other economic experts: The Fed aims for a target of 2% annual inflation: A level so low that consumers tune it out. If the annual inflation rate reaches that range and stays there, the Fed reasons, most Americans won't notice it. 'I think you'd need an extended period of somewhat lower inflation, in the low 2s or high 1s, along with wages that are outpacing that inflation,' said Bhave of Bank of America. If inflation eases to 2%, the Fed's target rate, it might still take many months for consumers to adjust to permanently higher prices. 'It is not long ago that you can remember what eggs cost in 2021 or 2021, compared to now,' said Alex Jacquez, chief of policy and advocacy at the progressive Groundwork Collaborative. Consumer prices spiked dramatically in 2021 and 2022. Prices continued to rise in 2023 and 2024, but not so sharply. If inflation continues to cool, and wages continue to rise, Jacquez and other said, the day will come when prices no longer seem so high. 'I think we could see consumers adjusting to prices as they are today, if we see the rate of inflation going to where it used to be,' Adams said. 'But it'll take time.' This article originally appeared on USA TODAY: Are Americans learning to live with inflation? Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 days ago
- General
- Yahoo
Purdue University immediately closes DEI office amid state, federal pressure
Purdue University announced Friday it is "sunsetting" DEI activities and initiatives, effective immediately."An increasing number of actions and policy measures at both the federal and state level have made it clear that doing so is a necessary part of our future as a public university and a state educational institution," the university said in a statement. The move comes after similar announcements from other Big 10 schools, including the University of Michigan and Ohio State. University Of Michigan Announces It's Shuttering Its Dei Offices Due To Trump's Executive Orders The Office of Diversity, Inclusion and Belonging will close as will related activities in colleges and departments, according to school officials. Staff colleagues working in DEI departments will have the opportunity to interview for vacancies in other departments. The Ohio State University 'Sunsets' Offices Amid Ongoing Review Of Diversity, Equity And Inclusion Work Read On The Fox News App The university will also update leading programs in its colleges into the Boilermaker Opportunity Program Plus in the Office of the Vice Provost for Enrollment Management to "serve all academic programs and to best support all current and future students," according to the statement. Cultural centers will continue to serve as open resources for the Purdue community, providing support for all students as part of the Office of the Vice Provost for Student Life. Dei Office Closures At Universities Pile Up After Another State Orders End To 'Woke Virus' "As we refocus our efforts on the success of all students in keeping with our land-grant mission and values, our team will be with you every step of the way through these updates," Purdue University Provost & Miller Family professor Patrick J. Wolfe wrote in the statement. Purdue University did not immediately respond to Fox News Digital's request for article source: Purdue University immediately closes DEI office amid state, federal pressure
Fox News
2 days ago
- General
- Fox News
Purdue University immediately closes DEI office amid state, federal pressure
Print Close By Alexandra Koch Published May 30, 2025 Purdue University announced Friday it is "sunsetting" DEI activities and initiatives, effective immediately. "An increasing number of actions and policy measures at both the federal and state level have made it clear that doing so is a necessary part of our future as a public university and a state educational institution," the university said in a statement. The move comes after similar announcements from other Big 10 schools, including the University of Michigan and Ohio State. UNIVERSITY OF MICHIGAN ANNOUNCES IT'S SHUTTERING ITS DEI OFFICES DUE TO TRUMP'S EXECUTIVE ORDERS The Office of Diversity, Inclusion and Belonging will close as will related activities in colleges and departments, according to school officials. Staff colleagues working in DEI departments will have the opportunity to interview for vacancies in other departments. THE OHIO STATE UNIVERSITY 'SUNSETS' OFFICES AMID ONGOING REVIEW OF DIVERSITY, EQUITY AND INCLUSION WORK The university will also update leading programs in its colleges into the Boilermaker Opportunity Program Plus in the Office of the Vice Provost for Enrollment Management to "serve all academic programs and to best support all current and future students," according to the statement. Cultural centers will continue to serve as open resources for the Purdue community, providing support for all students as part of the Office of the Vice Provost for Student Life. DEI OFFICE CLOSURES AT UNIVERSITIES PILE UP AFTER ANOTHER STATE ORDERS END TO 'WOKE VIRUS' "As we refocus our efforts on the success of all students in keeping with our land-grant mission and values, our team will be with you every step of the way through these updates," Purdue University Provost & Miller Family professor Patrick J. Wolfe wrote in the statement. CLICK HERE TO GET THE FOX NEWS APP Purdue University did not immediately respond to Fox News Digital's request for comment. Print Close URL
South China Morning Post
2 days ago
- General
- South China Morning Post
Student flees to China after being charged with voting illegally in Michigan
A Chinese national who was charged with voting illegally in Michigan last fall has fled the US, federal authorities said on Friday. Advertisement The man, who is not a US citizen, had surrendered his Chinese passport in November and was told not to leave Michigan. But he travelled to China from Detroit in January by showing another passport, the FBI said in a court filing. An arrest warrant was issued in April after he failed to appear at two court hearings in Ann Arbor, where he had been a student at the University of Michigan. He was facing charges of perjury and attempting to vote as an unauthorised elector, a felony. Only citizens can vote in federal elections, and every voter must attest to US citizenship when registering. The student was accused of lying about his citizenship when he registered to vote and then casting a ballot during an early voting period. He now faces a federal charge, though the US does not have an extradition treaty with China. Advertisement
