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US consumers’ short-term inflation outlook softened slightly in June, as the Michigan 1-Year Inflation Expectations indicator eased to 4.6%, down from 4.8% previously. Both the prior and current readings are dated June 2026, with the latest data update published on 26 June 2026.
The marginal decline suggests that households are seeing a bit less inflation pressure over the coming year, though expectations remain elevated relative to typical pre-pandemic levels. For policymakers and markets, even small movements in this closely watched gauge can influence views on the Federal Reserve’s policy path, since inflation expectations help shape future price and wage dynamics.
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