The U.S. Michigan consumer sentiment index increased to 52.9 in December, a slight improvement from November but still nearly 30% lower than the same period last year. This reflects persistent cost-of-living pressures affecting consumer confidence. Meanwhile, short-term inflation expectations have decreased for the fourth consecutive month to 4.2%, and long-term expectations have eased to 3.2%, indicating a potential moderation in inflation concerns despite the overall weak sentiment.