The University of Michigan Consumer Surveys said the one-year inflation outlook, released alongside its bimonthly reading of general consumer sentiment, fell 4.4% this month from a reading final reading of 4.9% in November and a preliminary reading of 4.6% two weeks ago.
This is the lowest level since June 2021 and the half-percentage-point drop in near-term inflation forecasts from November was the largest since September 2020.
Looking ahead five years, the outlook has moderated to 2.9%, from 3.0% last month and earlier in December.