US Consumer Year-Ahead Inflation Expectations Unexpectedly Fall

US year-ahead inflation expectations unexpectedly declined in early August, matching a more than two-year low, despite higher gasoline and grocery costs. Americans expect prices will climb at a 3.3% rate over the next year, down from the 3.4% expected in July, according to the preliminary August reading from the University of Michigan. They see costs rising 2.9% over the next five to 10 years, compared to last month’s 3%, data Friday showed. The university’s consumer sentiment index eased to 71.2 in early August, in line with expectations. Short-term inflation expectations...