Fears about tariff-reduced inflation has fallen significantly since February, according to a University of Michigan survey released Friday.
Year-ahead inflation expectations (the expected percentage change in the price level of goods and services over the next 12 months) dropped for a second straight month, falling from 5% in June to 4.4% this month, the lowest since February 2025, according to the survey data.
Additionally, long-run inflation expectations (the average rate of inflation that people anticipate will prevail over a longer period) dropped for the third straight month, falling from 4% in June to 3.6% in July.
"Both readings are the lowest since February 2025 but remain above December 2024, indicating that consumers still perceive substantial risk that inflation will increase in the future," Joanne Hsu, survey director, said in a statement.
Trump has imposed sweeping duties of 10% on all imports plus 30% on goods from China. Last week the president threatened to hit the European Union with a new 30% tariff starting Aug. 1.
He has also threatened to slap 50% duties on Brazil, which would push up the cost of orange juice and coffee. Orange prices leaped 3.5% just from May to June, and are 3.4% higher than a year ago, the government said Tuesday.
Information from the Associated Press was used in this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.