Key Points:
Consumer credit outstanding grew in July.
- Year-over-year, total credit has increased by 1.9%.
- While nonrevolving credit grew by 0.3% year-over-year, revolving credit growth was relatively strong at 6.6%.
- As a percentage of aggregate disposable income, both revolving and nonrevolving credit are below 2019 levels.
Credit as a Percentage of Disposable Personal Income (DPI)
The seasonally adjusted consumer price index (CPI) increased by 3.3% year-over-year in August; the CPI is currently growing at a 3.4% annualized rate.
- Core CPI, which excludes volatile food and energy components, also grew at a 3.4% annualized rate.
- Housing has been a key driver of inflation, and the CPI shelter component grew at a strong 6.4% annualized rate.
- While monthly readings can be volatile, core CPI growth is roughly consistent with the Fed’s 2% target on a 3-month basis.
Consumer Price Index Inflation
