Anchor Capital says US inflation rebound reflects supply shocks, not demand surge

Anchor Capital flagged US PCE inflation rising to 3.7% YoY in July, driven mainly by supply shocks, not demand. Limited evidence of second-round effects; wage growth moderating, unit labor-cost growth about 1.4% YoY in 2Q26. Longer-dated breakeven inflation expectations stayed range-bound, reducing risk of a sustained shift in inflation psychology. Core goods disinflation seen resuming as tariff effects fade; shelter inflation expected to cool as market rents run near 2%. Base case calls for a shallow, short-lived US tightening cycle; bar for prolonged Fed hikes seen as high. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Anchor Capital (Pty) Ltd published the original content used to generate this news brief on October 13, 2026, and is solely responsible for the information contained therein. (C)