The Iran War Boosts Inflation Concerns, US Consumer Confidence Index Falls to Record Low On May 22nd, due to the impact of the Iran War, the US consumer confidence index in May fell to a record low, and long-term inflation expectations significantly deteriorated. The May final values released by the University of Michigan on Friday showed that the consumer confidence index dropped from 49.8 in April to 44.8. This data is not only lower than all market expectations, but also lower than the initial value of 48.2. This survey covers the responses from respondents between April 21st and May 18th. Consumers expect prices to rise at an annual rate of 3.9% in the next 5 to 10 years, higher than April's 3.5% and reaching a seven month high. Consumers also expect prices to rise by 4.8% in the next year. The gasoline prices are hovering around their highest levels since 2022, exacerbating concerns among the American people about the cost of living and their unease about the ongoing war. The impact of inflation on household budgets, especially on low-income consumers, poses a risk to consumption prospects. The cost of living remains the primary concern, with 57% of consumers proactively mentioning that high prices are eroding their personal finances, up from 50% last month, "said survey leader Joanne Hsu in a statement