US consumer confidence drops in August on inflation worries

WASHINGTON (Reuters) – U.S. consumer confidence fell more than expected in August after two straight monthly increases amid renewed concerns about inflation, a survey showed on Tuesday.

The Conference Board said its consumer confidence index dropped to 106.1 this month from a downwardly revised 114.0

in July. Economists polled by Reuters had forecast the index retreating to 116.0 from the previously reported 117.0. The decline erased the back-to-back increases in June and July.

“Write-in responses showed that consumers were once again preoccupied with rising prices in general, and for groceries and gasoline in particular,” said Dana Peterson, chief economist at The Conference Board in Washington. “The pullback in consumer confidence was evident across all age groups, and most notable among consumers with household incomes of $100,000 or more, as well as those earning less than $50,000.”

Consumers’ 12-month inflation expectations rose to 5.8% from 5.7% last month.

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