Consumer credit debt hits all-time high amid steady inflation

Consumer credit trends show a complex landscape as debt levels and spending patterns shift. Credit card debt has reached a new all-time high, with average APRs hovering near record levels of over 22%.

While some indicators suggest consumer resilience, recent inflation data shows the Consumer Price Index rose 3.4% annually in August, slightly exceeding economist expectations. This steady inflation complicates the outlook for interest rate relief. As the Federal Reserve approaches its next decision, the persistence of inflation above the 2% target suggests that credit card rates may remain high for borrowers carrying revolving debt.