US consumer sentiment unexpectedly fell to the second-lowest level on record and inflation expectations climbed to multi-decade highs amid growing concerns about tariffs.

Expectations that inflation will rise increased sharply. All Americans appear worried about higher prices from tariffs.

The sense of rapid inflation eating into household spending power coupled with job market angst after a period of equity market falls drove the decline in sentiment to new lows today. Both the current conditions and the expectations indices fell, resulting in a 1.4 point drop in the headline reading to 50.8 versus consensus expectations of 53.4.

U.S. consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of President Donald Trump's trade policy.

U.S. consumer sentiment fell slightly in May for the fifth straight month as Americans increasingly worry that President Donald Trump’s trade war will worsen inflation

WASHINGTON >> U.S. consumer sentiment deteriorated further in May, with one-year inflation expectations soaring to levels last seen in late 1981 amid escalating fears over the economic impact of President Donald Trump’s trade policy.

The University of Michigan’s popular gauge of U.S. consumer sentiment edged down to 50.8 in a preliminary May reading from 52.2 in the prior month. This is the index’s fifth straight monthly drop. Expectations for inflation spiked.