US consumer sentiment falls on inflation worries

US consumer sentiment fell in August as households remained worried that inflation would stay elevated, University of Michigan survey data showed Friday.

The university's consumer sentiment index came in at 51.7 for August, slightly above a preliminary reading of 51.0 but down from 55.2 in July.

Joanne Hsu, director of the survey, said sentiment confirmed its early-month reading and fell about 6 percent from the previous month. She said it was 11 percent lower than a year earlier, with pessimism driven by continued worries that inflation will remain elevated for the foreseeable future.

Year-ahead inflation expectations eased to 4.0 percent from 4.2 percent in July, but the survey said current readings remained above levels seen before the Middle East war began.

The survey found sentiment declined across all political groups, with a particularly acute drop among Republicans. It also said older consumers and lower- and middle-income consumers showed sharper declines.

Hsu said consumers anticipated further increases in gasoline prices in both the short and long run amid policy uncertainty, including the Iran conflict.

The figures come months before US midterm elections in November.