US consumer sentiment and inflation expectations from the University of Michigan rose slightly in December, after the November reading came in at the second-lowest on record.
UMich US Consumer Sentiment, Inflation Expectations Rise Slightly in December
19 December 2025 - 16:12 CET
By Sandmark staff
The University of Michigan's Consumer Sentiment Index was revised to 52.9 from a preliminary 53.3, compared with 51 in November and below the 53.4 consensus provided by Trading Economics.
Year-ahead inflation expectations eased to a final 4.2%, compared with a preliminary 4.1% and 4.5% in November. The consensus was for 4.1%.
Bitcoin breached the $89,000 mark on Thursday after US inflation data came in well below expectations, sparking a brief rally across risk assets, although the figures were incomplete as the aftermath of the recent government shutdown lingered.
Inflation data shifts rate expectations
US November CPI data published on Thursday showed inflation cooling more sharply than expected.
Headline inflation slowed to 2.7% year on year, while core CPI eased to 2.6%, both well below consensus forecasts and reviving expectations that the Federal Reserve may have more room to cut rates in 2026.
The figures came in notably under market expectations of 3.1% for headline inflation and 3.0% for core CPI.
However, that release was complicated by the recent US government shutdown, which prevented the BLS from publishing October CPI data and limited the report to year-on-year and two-month comparisons rather than a standard monthly reading.
The softer data has brought the Fed’s policy path back into focus. While officials remain divided over the pace of easing next year, markets have moved more decisively, with investors increasing bets on further rate cuts in 2026.
