"Expected inflation costs have spiked from 3.8% in March to 4.8% this month, the largest one-month increase since last year, according to the University of Michigan's April survey of consumers."
"This April, the University of Michigan's survey also reported its lowest-ever sentiment reading in its 70-plus-year history after consumer sentiment sank about 11% this month across income levels and political affiliations."
"Vicki Morwitz, a marketing professor at Columbia University, stated, 'It works because we are more sensitive to base prices, and so it's a way of increasing the price without drawing as much attention to it.'"
"A 2026 JD Power study found that 35% of small businesses are adding surcharges for customer purchases made using credit cards."
Inflation expectations have surged from 3.8% to 4.8%, marking the largest monthly increase since last year. The ongoing U.S.-Israel war against Iran is contributing to rising fuel surcharges and economic uncertainty. Consumer sentiment has hit a record low, with an 11% decline reported across demographics. Many consumers attribute rising costs to the war. Businesses are increasingly adding surcharges, such as higher checked baggage fees and credit card transaction fees, often framed as cash discounts to minimize consumer awareness.
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