[U.S. consumer confidence index fell to a five-month low and inflation expectations rose again] October 23rd, U.S. consumer confidence dropped slightly to a five-month low in October. High prices and rising interest rates hit consumer sentiment. A University of Michigan survey released on Friday showed that the final consumer confidence index fell to 48 in October from 48.1 in September. However, the data improved from the initial reading and was higher than economists' forecasts. Consumers expect prices to rise 4.7% over the next year, up from 4.6% expected last month. They expect prices to rise by an average of 3.5% annually over the next five to ten years. Both inflation expectations are the highest since May. "After five consecutive years of inflation running above target, both short- and long-term inflation expectations have risen in recent months, highlighting the risk that high inflation expectations may become entrenched," survey leader Joanne Hsu said in a statement. "Persistent inflation, weak hiring and high mortgage rates continued to worsen consumer confidence in October. Gasoline prices remain well above $4 a gallon, exacerbating long-standing consumer dissatisfaction with the cost of living. "Regardless of political affiliation, consumers believe that inflation poses a much greater risk to the economy in the year ahead than unemployment," Hsu said. The current situation indicator fell to the second lowest on record, while the consumer expectations index improved for the first time since July.