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Consumer confidence in America rose in early July to its highest level in five months, driven by lower fuel prices, according to a report released by the University of Michigan yesterday (Friday).

The university said the consumer confidence index rose in July to 54.4 points, compared to 49.5 points in June, exceeding the expectations of all analysts surveyed by Bloomberg News.

Bloomberg noted that lower gasoline prices in the United States in June and early July helped ease pressures on American household budgets.

But since then, fighting between the United States and Iran has resumed, and the Strait of Hormuz has been closed again, causing oil prices to rise, along with fuel prices and inflation expectations.

Survey data was collected during the period from June 23 to July 13, with the report indicating that 70% of responses were received before the resumption of fighting between the United States and Iran in early July.

Regarding prices, consumers expect them to rise over the next year at an annual rate of 4.2%, compared to expectations of 4.6% in last month's survey. They also expect prices to rise over a period of 5 to 10 years at an annual rate of 3.3%, the same level recorded in the previous survey.