While inflation expectations have normalized, based on UMich's survey...

Source: Bloomberg

...consumer confidence overall disappointed in preliminary March data...

Source: Bloomberg

And while both Republicans and Democrats saw confidence improve, Independents were notably less confident...

Source: Bloomberg

Still, overall, a sizable minority of consumers continue to express concerns over the impact of high prices.

About 24% of consumers spontaneously mentioned food prices during interviews, up from 17% last month and the highest since July 2022. Sentiment for these consumers was a considerable 20 index points below the sentiment of those who did not mention food prices. Furthermore, approximately 36% of consumers blamed high prices for eroding their living standards,

Concerns have been particularly prevalent among lower- and middle-income consumers, who are also much less likely to expect real income gains in the year ahead than their higher-income counterparts.