Consumer sentiment hit a 10-year low in November as inflation climbed to its highest level since the 1990s, CNBC reports.
The article cites the University of Michigan Consumer Sentiment Index, which plunged to 66.8 for November, a 6.8 percent drop from the previous month. It’s the lowest the confidence metric has gone since November of 2011.
The survey also showed one in four consumers are reducing their living standards due to price increases. The inflation rate for October was 6.2 percent. The 12-month inflation forecast is now 4.9 percent.
“Consumer sentiment fell in early November to its lowest level in a decade due to an escalating inflation rate and the growing belief among consumers that no effective policies have yet been developed to reduce the damage from surging inflation,” said Richard Curtin, the survey’s chief economist.
Amid sinking consumer confidence, President Joe Biden’s popularity has reached a new low, slumping faster than any other U.S. president since World War II. Both Biden and Federal Reserve Chairman Jerome Powell said they expect inflation to ease later next year.
Read more at CNBC.