The University of Michigan's Survey of Consumers showed 5-year consumer inflation expectations held at 3.3% in August, unchanged from July, extending a second consecutive month of stability in a closely watched measure of long-term price pressures. The reading suggests households are not expecting a sharp pickup in inflation from current levels, a signal that may offer some reassurance to the Federal Reserve as it keeps monetary policy tight. The measure matters because long-term inflation expectations can shape wage bargaining, spending plans and central bank decisions. The steady August figure comes as inflation has cooled from the multi-decade highs seen in 2022, though the outlook remains above both the Fed's 2% target and the pre-pandemic average range of about 2.2% to 2.6%. The survey also tracks a year-ahead inflation expectation, which tends to be more volatile and is often used as a short-term gauge. The report said this data point will remain under close watch for signs of any shift in consumer sentiment.