Inflation expectations soared in the latest consumer sentiment reading, partly due to worries about potential tariffs.

U.S. consumer sentiment dropped more than expected in February to a 15-month low and inflation expectations rocketed as households worried that President Donald Trump's plans for steep and broad-based tariffs would eat into their purchasing power.

Consumer sentiment plummeted to its lowest level since November 2023 this month, according to the final report for the Michigan Consumer Sentiment Index.