Breakfast Briefing | 25 May 2026 | US Consumer Sentiment Hits Record Low

American consumers are the most pessimistic on record. The University of Michigan's Consumer Sentiment Index fell to a historic low in May, its third consecutive monthly decline, with petrol prices and persistent cost-of-living pressures doing the damage. Year-ahead inflation expectations have risen to 4.8%, and long-run expectations have jumped from 3.5% to 3.9%.Meanwhile, the Iran-US standoff in the Persian Gulf is far from resolved. Despite earlier optimism, Trump confirmed over the weekend that a deal is not fully negotiated. With oil at $97 USD/bbl and Canadian producer prices running 11.4% above year-ago levels, global supply chain cost pressures remain significant. Fed Governor Waller's comments that the next move could be a hike, not a cut, add further weight to the hawkish global outlook.For Australia, the week ahead is pivotal. Wednesday's April CPI release and Thursday's household spending data are both expected to come in elevated, with direct implications for the RBA's rate outlook.Full briefing and source links: https://www.interest.com.au/economy/678/iran-us-deal-proving-hard-close-us-consumers-sentiment-hits-record-low-canada-battlesCheck the latest home loan and term deposit rates at interest.com.au#BreakfastBriefing #AustralianEconomy #InterestRates #RBA #interestcomau #USInflation #FederalReserve #IranUSNuclearDeal #OilPrices #GlobalEconomy #FinanceNews #MacroEconomics