Inflationary pressure has intensified. In May, consumer credit in the United States declined for the first time in two years

The data released by the US Federal Reserve recently shows that US consumer credit declined month-on-month in May for the first time since 2024, indicating that under the pressure of inflation, American consumers have become more cautious in borrowing, reflecting economic concerns.

The report indicates that the total consumer credit in the United States decreased by 182 million US dollars in May. Among them, the balance of revolving credit such as credit cards witnessed the largest decline since 2024.

According to a report by Xinhua News Agency, an article on the Microsoft website in the United States analyzed that the reduction in consumer credit is mainly due to the high annual interest rates of credit cards, which have increased the cost of credit. This change indicates that some families are reducing their reliance on high-interest debts, and the trend of credit tightening may affect non-essential consumption in the coming months. If consumer credit continues to tighten, it may ultimately affect housing demand and other large-scale consumption expenditures.

Benjamin Huxsmith, a senior economist at KPMG, believes that due to the current high levels of interest rates and inflation in the United States being much higher than before the pandemic, most consumers have become more cautious when using credit.

Data released by the US Department of Commerce on June 25th showed that the year-on-year growth rate of the US personal consumption expenditure price index in May reached 4.1%, higher than 3.8% in April. This was the highest level since May 2023, highlighting the upward pressure on US prices caused by the war in Iran.