Washington, DC CNN  — 

Inflation’s steady slowdown in recent months has kept Americans feeling optimistic about the future.

Consumer sentiment tracked by the University of Michigan rose 13% in July from the prior month, according to a preliminary reading, reaching its highest level since September 2021. Meanwhile, expectations for inflation rates in the year edged up to 3.4%. Consumers’ economic outlook for the year ahead also improved.

This story is developing and will be updated.