Consumer Sentiment Sours Over Inflation Concerns

Consumer sentiment has fallen as inflation and rising prices associated with the Iran conflict persist.

Preliminary April data from the University of Michigan Consumer Sentiment Index shows that sentiment fell from 53.3 in March to 47.6 in April. This comes as consumers expect prices to rise at an annual rate of 4.8% over the next year and 3.4% over the next five to 10 years.

The economic pressures stemming from the conflict in Iran and uncertain access to the Strait of Hormuz, the recent main drivers in rising prices, aren't helping calm worries.

The consumer price index increased to a seasonally adjusted 0.9% last month, putting the annual inflation rate at 3.3%. The price of regular gasoline in the U.S rose 25%, from $2.91 in February to $3.64 in March, The New York Times reported.

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RSK: The Iran conflict has taken a toll on the consumer price index and shaken the consumer confidence. This means leases that are being signed are shorter and smaller.