Inflation Outlook Rises as Consumer Frustrations Mount Over Stalled Decline

• Consumers frustrated as inflation decline stalls, Michigan survey shows expectations rising • Inflation projections increased to 3.1% next year, up from 2.9% in March • Slight rise reflects frustration that rapid inflation slowdown has stalled recently • Still not at concerning levels for Fed, but upward trend could raise eyebrows • Consumer inflation expectations important for Fed’s goal of 2% inflation rate