Consumer Sentiment Plummets as Inflation Fears and Bond Yields Surge

Consumer sentiment fell to 48.1 in September, the lowest in four months, as surging fuel prices from the Iran war reignited inflation fears. Year-ahead inflation expectations jumped to 4.6%, up from 3.4% before the conflict began.

Headwinds

• Rising energy costs: Diesel hit record highs in September, with gasoline climbing sharply, directly hitting consumer wallets.
• Bond market revolt: The 10-year Treasury yield surged to 5.19%, a 19-year high,...