US October CPI +7.7% y/y vs +8.0% expected

News
  • Prior was +8.2%
  • m/m CPI +0.4% vs +0.6% expected
  • Prior m/m reading was +0.4%
  • Real weekly earnings -0.1% vs -0.1% prior

Core inflation:

  • Ex food and energy +6.3% vs +6.5% y/y expected
  • Prior ex food and energy +6.6%
  • Core m/m +0.3% vs +0.5% exp
  • Prior core m/m +0.6%

This inflation report sets the stage for the rest of the year, or at least until the December 13 CPI print.

There’s a major dovish reaction in the markets with the US dollar sinking, equities dropping and bonds rallying strongly.

The details of the report show shelter running hot with owners-equivalent rent +0.6%.

  • Used cars -2.4% m/m
  • Food +0.6% m/m
  • Energy +1.8% m/m
  • Fuel oil +19.8% m/m
  • New vehicles +0.4%
  • Apparel -0.7%
  • Medical care 0.0%

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