Market Reports - US Inflation Watch July 2024

US Inflation Watch July 2024 - Highlights

  • Shelter and transportation prices cooled in May and June, reducing core services inflation and easing Fed concerns about sticky inflation due to Q1 strength

  • Gold cooled in May as China paused purchases, copper declined 15% due to position unwinds and weak economic data. Oil weakened in May after OPEC+ agreed to increase output

  • Wage growth indicators are slowing, indicating healthy labour market normalization. The Fed will welcome this, although further progress is needed

  • The monetary base fell in May and June as reserve balances declined. Bank lending remained solid overall, despite a sharp decline in commercial real estate lending in June

  • Liquidity conditions were positive until mid-June, but turned unfavorable towards the end of the month as the TGA was rebuilt and the RRP spiked

  • The Q2 senior loan officer survey showed easing lending standards for C&I loans and stable demand, suggesting credit growth may accelerate later this year

US Inflation Watch presents 20 charts comprising 23 key inflation indicators grouped into five categories of economic data including consumer/producer price inflation, commodity prices, wage inflation, inflation expectations and broad monetary indicators. All data are sourced from official sources including the Bureau of Labor Statistics, the Federal Reserve, University of Michigan and Commodities Research Bureau. The objective of this report is to provide a comprehensive summary of inflation and future indicators of inflation according to the latest data out of the US.

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US Inflation Report July 2024