US Consumer Sentiment Near Record Low as Gas Prices Surge 40% Ahead of Midterms

U.S. consumer sentiment fell to its second-lowest level on record in October as gasoline prices climbed 40% year-over-year and diesel rose nearly 75%, according to the University of Michigan's monthly survey released Friday. The index has dropped 10% from a year ago and 15% since February, before the war with Iran began. Regular unleaded averaged $4.29 a gallon nationwide, while diesel stood at $6.32. Refinery disruptions pushed prices sharply higher in Great Lakes states, including Michigan at $4.77 and Ohio at $4.37. Brent crude topped $116 a barrel Friday for the first time since March, on pace for a 4.5-year high. Fifty-six percent of surveyed consumers cited high prices as hurting their finances, a share that has risen four consecutive months, with Republicans showing the largest proportional increase. Year-ahead inflation expectations edged up to 4.7% from 4.6%, and long-run expectations rose to 3.5%. The Federal Reserve meets next week, with a rate decision expected Wednesday.