Year-ahead inflation expectations in the United States, as compiled by the survey of the University of Michigan, inched lower to 4.4% in July of 2025 from 5% in the previous month, according to a flash estimate. It was the second consecutive drop from the 23-year high of 6.6% touched in May as US President Trump went back on part of his aggressive tariff threats on major trading partners, easing concerns that higher import costs would lead to consumer inflation. Consistently, the five-year outlook fell for a third straight month to 3.6%.