Inflation expectations surge to highest level since 1981 as tariffs hurt sentiment

Inflation expectations skyrocketed in April and consumer sentiment plunged as President Donald Trump moved to impose massive tariffs, major warning signs for the economy as the specter of a recession looms large.

The University of Michigan Consumer Sentiment Index for mid-April released on Friday found that year-ahead inflation expectations jumped from 5% last month to a concerning 6.7% this month. That is the highest reading since 1981, when the Great Inflation was finally winding down.