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The preliminary index of consumer sentiment at the University of Michigan in November was 97.8

The characteristic responsible for the mood of American citizens in November showed a decline, as the expectations among the population regarding the current conditions and the near-term prospects have somewhat surrendered their positions.

According to the latest report released by the University of Michigan, the preliminary value of the indicator in question was 97.8, which is 2.9 bp lower than the previous, October estimate. The October figure has become the highest since the beginning of 2004. Experts assumed that the mood indicator in November will be 100.0

Expectations of citizens regarding inflationary prospects in the near future increased, which became a good signal for the US regulator, which closely follows inflation expectations, as they affect the price dynamics of retail trade. These expectations for the year ahead in the period under review were 2.6%, while a month earlier they were 2.4%. Five-year expectations were 2.5%, remaining unchanged once again.

Over the past few months, the inflation rate remains below the 2% target. In February, the annual increase in the PCE indicator, which is responsible for the dynamics of the cost of spending on private consumption, was higher than the fixed bar, which was the first such event in the last five-year period. However, after that everything returned to normal, and September's growth was only 1.6% on an annualized basis. The regulator is confident that weak inflationary dynamics is a temporary phenomenon.