A shopper carries bags in San Francisco, California, on January 7, 2025. Photographer: David Paul Morris/Bloomberg.

U.S. consumers’ long-term inflation expectations rose to the highest level in almost three decades on concerns that President Donald Trump’s tariffs will translate into higher prices.

Consumers expect prices to climb at an annual rate of 3.5 percent over the next 5 to 10 years, according to the final February reading from the University of Michigan. This rate is the highest since 1995, based on data compiled by Bloomberg, and was almost entirely driven by views among survey respondents who are Democrats.

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