Inflation expectations for a year from now increased to an annual rate of 4.9% from 4.5% in July. According to the consumer price index, inflation is currently running at a 2.7% pace, but many items have been rising at a rate higher than that.

Expectations of more inflation ahead have soured consumers' mood, according to the latest readout from the University of Michigan's long-running sentiment survey. "Consumers are no longer bracing for

Key Takeaways Consumers felt worse about the economy in August as a closely-followed survey showed increased worries about inflation and the labor market.It’s the first time in four months that consumer sentiment has declined.