U.S. consumer sentiment unexpectedly fell for the first time in three months as lingering frustration with a high cost of living offset more sanguine views of the job market, surveys found on Friday.

The preliminary October sentiment index declined to 68.9 from 70.1 in September, reported the University of Michigan. The median estimate in a Bloomberg survey of economists called for a reading of 71.

Consumers expect prices will climb 2.9 percent over the next year, up from the 2.7 percent expected in September and the first increase in five months, said the report. At the same time, they see costs rising 3 percent over the next five to 10 years, down from 3.1 percent in the prior month.

"While the rate of inflation has cooled over the past year, households remain troubled by high prices that they also see outpacing their income gains in the year ahead," said Bloomberg about the development. "A measure of consumers' perception of their current financial situation dropped to the lowest level since the end of 2022."

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