Bank of America joins in on US 'disinflation' – its on track and consumer is flexing

<p>"Disinflation" has been popping up in analyst notes all over the place:</p><ul><li><a href="https://www.forexlive.com/centralbank/ubs-says-the-global-economic-story-is-very-clear-disinflation-pressures-being-kept-alive-20230907/" target="_blank" rel="follow" data-article-link="true">UBS says the global economic story is very clear – disinflation pressures being kept alive</a></li><li><a href="https://www.forexlive.com/centralbank/morgan-stanley-says-the-us-is-in-a-disinflationary-process-lower-their-inflation-forecast-20230918/" target="_blank" rel="follow" data-article-link="true">Morgan Stanley says the US is in a disinflationary process, lower their inflation forecast</a></li></ul><p>Bank of America are on board:</p><ul><li> The August CPI, PPI &amp; retail sales data leave our core views unchanged. Disinflation is on track and the consumer is resilient. </li><li>The Fed's message … is likely to be balanced. The dots for 2024 and beyond should show slower cuts and a higher r*. </li></ul><p>BoA do have 2 concerns though:</p><ul><li>the recent UAW strike which has shut down auto production</li><li>chances of a government shutdown on October 1 are rising </li></ul><p>Dis inflation, dat inflation.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.