US Consumer Sentiment Plunges Amid Rising Prices and Inflation

Consumer sentiment hit its lowest level in nearly three-quarters of a century as rising prices weighed heavily on shoppers. According to the University of Michigan's monthly survey, the final reading of the index registered at 48.1 in September, marking the second-lowest final reading ever recorded.

The average price of a gallon of gas in the U.S. is $4.49, a roughly 50% jump since the war began in late February, contributing to inflation that stands more than a percentage point higher than the Federal Reserve's target rate of 2%. Shoppers expect inflation to rise even more over the next year.

The economy remains fairly robust by some measures, with a blockbuster jobs report earlier this month showing employers added 162,000 workers in August. However, persistently elevated prices have continued to take a toll on shoppers, according to Fed Chair Kevin Warsh, who stated 'The plain fact is that inflation is too high and has been for too long.'