The US one-year inflation expectations have surged to the highest level since 1981.

Consumer confidence index has declined for the fourth consecutive month, dropping by 8% compared to March. Although the decline in the current situation index in April was not significant, the expected index plummeted significantly due to the decline in personal financial and business conditions. Since January, the expected index has plummeted by 32%, marking the largest three-month percentage decrease since the 1990 economic recession. Expectations of middle-income families deteriorated severely this month, and expectations of a wide range of populations of different ages, education levels, incomes, and political persuasions have also worsened. Consumers believe that there are risks in various aspects of the economy, largely due to uncertainty in trade policies and possible future inflation. Labor market expectations remain bleak. More worrisome, consumers expect a slowdown in their income growth over the next year. The one-year inflation rate expectation soared from 5.0% last month to 6.5% this month, the highest level since 1981, signaling a consecutive increase of 0.5 percentage points or more in inflation expectations for four months. Long-term inflation expectations rose from 4.1% in March to 4.4% in April.