Persistently high inflation took a toll on Americans' attitudes this month as many began to pay back student loans following a three-year hiatus.

The University of Michigan's consumer sentiment index fell 7% in October from the prior month, according to a preliminary reading released Friday. Sentiment in October was gloomy by historical standards, but well above the all-time low recorded in June 2022 when inflation was at a four-decade high.

"Nearly all demographic groups posted setbacks in sentiment, reflecting the continued weight of high prices," said Joanne Hsu, director of the university's Surveys of Consumers.

The survey's index of personal finances plunged about 15%, "primarily on a substantial increase in concerns over inflation," according to a release. October marks the first month of Americans paying back their student loans since the pandemic-related pause.

Expectations for inflation in the year ahead rose to 3.8% this month from 3.2% in September, "the highest since May 2023" and "well above the 2.3-3.0% range seen in the two years prior to the pandemic," according to the university.

This story is developing and will be updated.