Consumers haven’t felt this bad about the economy since November | CNN Business

New York
CNN
 — 

Consumer sentiment plunged to the lowest level in six months as price increases reaccelerated, according to the latest University of Michigan survey of consumers, released Friday.

Additionally, consumers are bracing for even higher price increases in the year ahead compared to readings from prior months, the survey found.

The gauge, which is closely tracked by the Biden administration, plunged 13% from April’s 77.2% reading to 67.4%. However, that’s still a better reading than last May, when inflation was running at 4%, versus the latest reading of 3.5%.

Even though inflation is lower compared to a year ago, it’s been moving in the wrong direction recently, shifting expectations for a rate cut from the Federal Reserve to the back burner.

This is a developing story and will be updated.