🇺🇸U.S. Consumer Prices Continue to Catch Lower: Cable FX Macro

• July U.S. inflation report showed headline prices easing to 2.9% Y/y, the lowest since 2021. We have previously shown the CPI slowly tracking PPI and a NY Fed measure of global supply chains lower

• This inflation cycle saw global supply chain stress peak way before consumer inflation, back in late 2021. Producer prices peaked just a few months later at 11.70% Y/y

• Of course, I'm not implying U.S. consumer prices fully depend on these measures, but we can clearly point at the upside pressures as partial drivers of higher CPI