AI Data Insight
The US University of Michigan 5-year inflation expectation for October 2026 (Q4 2026) climbed to 3.5%, higher than the previous 3.4% and in line with market consensus. As both 1-year and long-term inflation expectations hit new highs since May, consumer sentiment declined, dragged down by purchasing power for durable goods. The stickiness of medium-to-long-term inflation expectations may increase the pressure on the Federal Reserve to maintain tightening, and the market needs to beware of the risk of high-level interest rate volatility.