(Reuters) – The Consumer Sentiment Index released last week by the US University of Michigan's Surveys of Consumers dropped to 58.6 in August from 61.7 in July, reflecting renewed inflation concerns.
Meanwhile, consumers' year-ahead inflation expectations rose from 4.5 percent in July to 4.9 percent in August.
The US Department of Labour said producer prices in July jumped more than expected, with wholesale vegetable prices surging to 38.9 percent, the sharpest rise since March 2022.
Analysts say tariffs are a key factor, as over one-third of US vegetables are imported.
Goldman Sachs estimates that consumers have already absorbed 22 percent of tariff costs, a figure that could climb to 67 percent if tariffs remain in place.