U.S. inflation expectations have shown remarkable stability this August. The University of Michigan reports that one-year inflation expectations remain steady at 2.9%, a figure that aligns with the average of the past four decades. Historically, these expectations have fluctuated significantly, peaking at a staggering 10.4% in January 1980 and bottoming out at just 0.4% in November 2001.
Similarly, the five-year inflation outlook remains unchanged at 3%, maintaining a stable trend in an otherwise unpredictable economic landscape.