U.S. consumer sentiment unexpectedly dropped to an eight-month low in early July, according to the University of Michigan’s preliminary reading. Despite expectations for easing inflation, consumers remain frustrated with persistently high prices, which are eroding living standards. The sentiment index fell to 66 from 68.2 in June, contrary to economists’ predictions of a slight increase. While consumers’ inflation expectations for the next year and the long term decreased slightly, nearly half of the respondents spontaneously expressed concerns about high prices impacting their quality of life. This decline in sentiment comes despite recent data showing cooling inflation, highlighting the ongoing impact of price pressures on consumer perceptions of the economy.