U.S. consumer sentiment has plummeted to a record low and concerns about inflation have intensified amid war with Iran,<a href="https://www.sca.isr.umich.edu/"> data</a> from a University of Michigan survey released Friday showed.

The composite index of consumer sentiment, which is calculated by the university, fell to 47.6 points. That's 10.7% below March's level and the lowest ever recorded, CNBC <a href="https://www.cnbc.com/2026/04/10/consumer-sentiment-inflation-fears-iran-war.html">noted</a>. The index of current economic conditions and the index of consumer expectations also showed double-digit declines from the previous month.

The deterioration in sentiment coincided with a sharp jump in inflation expectations: survey participants now expect prices to be 4.8% higher a year from now. That's a full percentage point higher than the March poll showed and the highest since August 2025, CNBC writes. In April 2025 - after President Trump announced "reciprocal" customs duties - respondents' forecast for the year ahead was 6.5%.

Long-term inflation expectations in the University of Michigan survey - for the next five years - also rose: to 3.4%. This is 0.2 p.p. higher than a month earlier, although 1 p.p. lower than a year ago.

Comments from survey participants "show that many consumers blame the conflict with Iran for unfavorable changes in the economy," said University of Michigan research team leader JoAnn Hsu. However, she caveated that most of the interviews were completed before the April 7 cease-fire.

"Economic expectations are likely to improve if consumers are convinced that supply disruptions caused by the conflict with Iran have ended and gasoline prices have fallen," she said.

The survey was published almost immediately after the Bureau of Labor Statistics<a href="https://oninvest.com/article/inflacia-v-ssa-vzletela-do-maksimuma-pocti-za-2-goda-eto-pervaa-ocenka-effekta-vojny"> reported</a> that the overall consumer price index in March rose 0.9% compared to February, while in annual terms inflation accelerated to 3.3%. The agency estimated that a jump in energy prices accounted for most of the increase in the overall index, while food inflation remained subdued.<br><br>

<i>This article was AI-translated and verified by a human editor</i>

The Consumer Price Index (CPI), which measures changes in the cost of goods and services in the U.S., rose 0.9% in March from the previous month, according to data from the Bureau of Labor Statistics, the first full picture of how the surge in oil prices due to the war in the Middle East has affected consumer inflation, Barron's <a href="https://www.barrons.com/livecoverage/inflation-report-cpi-data-march-fed-rate-cuts/card/march-inflation-data-could-deliver-multiple-headaches-for-the-fed-sT6urlxgWemjTTX0Y9Qp">notes</a>.

U.S. inflation soared to its highest in nearly 2 years. This is the first assessment of the effect of the war

Physical North Sea crude oil prices rose to a record high on the back of Iran's continued control of the Strait of Hormuz, adding to market anxiety, <a href="http://ft.com/content/f04ad855-81e3-49c5-827e-d3c4acb901c9">says the</a> Financial Times (FT).

U.S. consumer sentiment hits all-time low

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