U.S. consumer concerns about inflation at lowest level since early 2022: survey

Investing.com -- Consumer concerns about inflation have fallen to their lowest level in nearly three years, according to Morgan Stanley’s latest U.S. Consumer Pulse Survey, even as analysts warn that tariffs could still lead to future price pressures.

In the bank’s 69th monthly survey of around 2,000 consumers conducted between Sept. 25 and 29, 56% of respondents cited inflation as their top concern, down from 60% in August and 63% a year earlier.

“While inflation remains the number one concern for consumers over the next 12 months, the proportion of consumers reporting it as their primary concern has dropped to the lowest level since 2022,” Morgan Stanley said.

The firm cautioned that the improvement might be premature. “Tariff price pass-through is likely not yet complete,” analysts wrote, noting that more than two-thirds of affected firms have yet to raise prices or expect further increases.

The bank’s analysis of corporate transcripts also found that companies are “increasingly discussing flexing pricing power to mitigate the impact of tariffs.”

Consumer sentiment toward the economy and household finances has also improved.

Morgan Stanley said thirty-six percent of respondents expect the economy to improve over the next six months, up from 33% last month, while those expecting conditions to worsen fell to 46% from 49%.

Morgan Stanley said this marks a “notable improvement from -16% last month,” though confidence remains below January highs.

The survey also highlighted the growing role of inheritance in household finances, with 17% of consumers having received one and 14% expecting to.

Morgan Stanley said inheritances are “primarily used for savings, retirement, or investments,” underscoring their link to long-term financial security.

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