The University of Michigan's preliminary consumer sentiment index rose to 48.9 in June from 44.8 in May, topping expectations for a 46.0 reading in a Bloomberg survey.
The current conditions index increased to 48.4 from 45.8, while the expectations reading jumped to 49.3 from 44.1.
"Even with June's early gains, however, views of the economy are still relatively dour," the University of Michigan said Friday in a statement. "Consumers remain focused on kitchen table issues."
Consumers "feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run," the university said.
One-year inflation expectations fell to 4.6% from 4.8%, while five-year inflation expectations dropped to 3.4% from 3.9%.
The twice-monthly sentiment index measures consumer sentiment early in the current month and is then revised later in the month in a final estimate. The headline index is a combination of the current assessment and expectations for the near future.
A higher reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.