Prior was 69.5 • Current conditions 69.8 vs 75.3 expected (75.7 prior) • Expectations 66.3 vs 66.0 expected (65.5 prior) • 1-year inflation 3.1% vs 3.5% prior • 5-10 year 2.7% vs 3.0% prior This survey is tied to gasoline prices so I'm not surprised the headline missed. I'm not sure why economists get that wrong so often. Meanwhile, the drop in inflation expectations is good news. The Fed got burned last year by following this metric too closely but there is a clear trend here. (full story)

With CPI and PPI both printing hotter than expected, import and exports prices rising more than expected, and the market's implied inflation expectation also soaring, this morning's much-watched UMich inflation expectations index should be a little moot. Nevertheless, the survey respondents from the UMich survey saw inflation expectations plunging both short- and medium-term...{chart} The headline sentiment indicator for the preliminary September data declined from 69.5 to 67.7, with current conditions tumbling while future expectations inched higher...{chart} Survey Director Joanne Hsu notes that "so far, few ... (full story)