Americans expect inflation to stay painfully high. That’s good news for stocks.

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Headline inflation may have come down over the past year, but consumers’ expectations about future inflation have not. In fact, five-year expected inflation has been inching up rather than down in recent months, according to the University of Michigan consumer survey.

The median expectation is that inflation will run at a 3.1% annualized pace over the next five years; you have to go back to 2008 to find a higher reading. The mean expectation, which skews higher, is the highest it’s been since the mid-1990s.

Such…

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