US consumer sentiment edges up in April; short-term inflation expectations rise

WASHINGTON (Reuters) – U.S. consumer sentiment inched up in April, but households expected inflation to rise over the next 12 months.

The University of Michigan’s preliminary April reading on the overall index of consumer sentiment came in at 63.5, up from 62.0 in the prior month. Economists polled by Reuters had forecast a preliminary reading of 62.0.

“Rising sentiment for lower-income consumers was offset by declines among those with higher incomes,” said Surveys of Consumers Director Joanne Hsu. “While consumers have noted the easing of inflation among durable goods and cars, they still expect high inflation to persist, at least in the short run.”

The survey’s reading of one-year inflation expectations rose to 4.6% from 3.6% in March. Its five-year inflation outlook was unchanged at 2.9% for the fifth straight month and has stayed within the narrow 2.9-3.1% range for 20 of the last 21 months.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)