By Geoffrey Smith
Investing.com -- Consumer sentiment across the U.S. improved in the month through early August, but expectations for inflation remained stuck at elevated levels, suggesting that the Federal Reserve's aggressive rate hikes this year haven't yet had their desired effect.
The University of Michigan said on Friday in its monthly survey that expectations for inflation one year from now fell to 5.0% from 5.2% a month earlier, but expectations for inflation over a five-year period edged up to 3.0% from 2.9%.
One of the main reasons advanced by the Fed for its series of rate hikes - the last two of which were each by a chunky 75 basis points - has been to convince Americans that it won't allow the current sharp burst of inflation to last.
The University's main sentiment index, however, improved to its highest level in three months, rising to 55.1 from 51.5 in July. That was above forecasts for a more modest rise to 52.5.