Inflation expectations for a year from now increased to an annual rate of 4.9% from 4.5% in July. According to the consumer price index, inflation is currently running at a 2.7% pace, but many items have been rising at a rate higher than that.

US consumer sentiment unexpectedly fell for the first time since April and inflation expectations rose on lingering anxiety about the impact of tariffs.

Consumer sentiment worsened in August, snapping two consecutive months of improved attitudes among shoppers as President Donald Trump imposed sweeping new tariffs on nearly 70 countries. The fresh reading fell short of economists’ expectations.