HSBC: In the coming months, inflation in the United States may rise

On June 28, HSBC pointed out that given the continued stickiness of services inflation and the “easier” supply-driven improvements in energy prices and global supply chains (these improvements are critical to the collapse of commodity price inflation), we still expect the pace of inflation improvement to be gradual and uneven from now on. There are some signs of discounting in the U.S., but inflation is set to rise in parts of the U.S. in the coming months, given base effects, recent strength in the prices of a range of commodities from metals to food, and ongoing shipping disruptions and impact on freight costs.