Consumer Confidence Drops as Inflation Fears Rise

Image Credits: Scott Olsen/Getty Images | Customers shop for food at a grocery store on January 15 in Chicago (caption from CNN)

In February 2025, a survey by the University of Michigan showed that people are feeling less confident about the economy. The Consumer Sentiment Index, which measures how optimistic people are about spending money, dropped from 71.1 in January to 67.8—the lowest level since July 2024.

At the same time, inflation fears are rising. People now expect prices to go up by 4.3% over the next year, compared to 3.3% last month. This is the highest inflation concern since November 2023.

Experts say these worries may be linked to possible new tariffs, which could make everyday goods more expensive. These concerns are affecting people across different income levels and political beliefs.

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