Consumer sentiment hits fresh record low in May as Iran war fuels inflation worries

Key points

• "Consumer sentiment fell for the third straight month as supply disruptions in the Strait of Hormuz continue to boost gasoline prices.
• Sentiment is now just below the previous historical trough seen in June 2022," Surveys of Consumers Director Joanne Hsu said in a statement.
• "Critically, consumers appear worried that inflation will increase and proliferate beyond fuel prices, even in the long run." The index of consumer sentiment fell to 44.8 from a preliminary reading of 48.2. It's also well below the 49.8 level seen at the end of April.
• Consumer sentiment has tumbled to a fresh record low in May as fears of higher prices grow due to the U.S.-Iran war and elevated oil prices, the University of Michigan's Surveys of Consumers said Friday.
• Indeed, inflation expectations over the year ahead rose to 4.8% from 4.7% last month.