By Greg C. Truax
Americans remian in a gloomy mood.
The University of Michigan’s latest index of consumer sentiment dropped again — to 66.8 in November, the lowest level in a decade.
Inflation is top of mind, a major reason for the glum shrug of the shoulders by consumers. Big rises in food and energy always grab attention. So does the fact that inflation, which is running hot at 6.2 percent, is rising faster than wages.
Recall that the Federal Reserve’s inflation goal is 2.2 percent.
Importantly, the sentiment survey revealed that consumers expect an inflation rate for 2022, an election year, of 4.9 percent, a pessimistic view that no doubt reflects a belief that effective policies have not been developed to confront inflation.