US: Demand still dominant but moderating – BNP Paribas

BNP Paribas analysts assess that in the United States (USD), demand remains the main driver of inflation, though its contribution has eased from post‑Covid peaks. BNP Paribas analysts assess that in the United States (USD), demand remains the main driver of inflation, though its contribution has eased from post‑Covid peaks. Using (Bureau of Economic Analysis) and San Francisco… BNP Paribas analysts assess that in the United States (USD), demand remains the main driver of inflation, though its contribution has eased from post‑Covid peaks. BNP Paribas analysts assess that in the United States (USD), demand remains the main driver of inflation, though its contribution has eased from post‑Covid peaks. Using (Bureau of Economic Analysis) and San Francisco Fed methodology, they find supply factors are again relevant, similar to 2018–19 levels, with tariffs, higher input prices and longer delivery times likely to keep supply‑side inflation pressures elevated.Demand-led inflation shows signs of cooling"In the United States… For traders, the practical value is less about the headline alone and more about how it changes context, sentiment and the quality of the next decision. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.