WASHINGTON, April 12 - U.S. consumer sentiment receded in April and households expected inflation to increase over the next 12 months and beyond, likely providing more ammunition for the Federal Reserve to delay cutting interest rates until September.
"This increase in inflation expectations is not what the Fed wants to see, but despite the increase, they remain in line with the recent trend and are well-anchored," said Eugenio Aleman, chief economist at Raymond James. "Overall, consumers are reserving judgment about the economy in light of the upcoming election, which, in the view of many consumers, could have a substantial impact on the trajectory of the economy," said Joanne Hsu, the director of the University of Michigan's Surveys of Consumers.
Excluding fuels and food, import prices were unchanged. These so-called core import prices edged up 0.1% in February. Core import prices fell 0.4% on a year-on-year basis in March.