US consumer sentiment falls to second-lowest level on record

US consumer sentiment fell to 48.0 in October, its second-lowest level on record.

The University of Michigan’s survey measures how people view their finances and the economy.

High prices are weighing on household budgets, with grocery and petrol costs among consumers’ concerns.

Tensions between the US and Iran have driven up prices, while annual inflation was 3.7 percent in the latest figures cited.

Independent voters’ sentiment fell close to its record low, adding a political dimension ahead of the US midterm elections.

Consumers’ expectations for inflation over the next five years rose to 3.5 percent, from 3.4 percent in September.

The Federal Reserve is expected to leave interest rates unchanged at its next policy decision on Wednesday.