CIBC Research discusses its reaction to today's US CPI report for the month of September.
"Inflation continued at a lofty rate in the US in September. The 0.4% monthly advance in total prices was a tick hotter than expected and left annual inflation a tick higher at 5.4%. That reflected increases in both food at home prices as well as energy prices. Core categories rose by 0.2% on the month as expected, with strong advances in shelter, new vehicles, and car insurance only partly offset by drops in used cars and Delta-impacted airfares. That left the annual rate of core inflation steady at 4.0%, and implies some upside for the Fed's preferred prices measure, core PCE prices, when the data is released," CIBC notes.
"Overall, given the persistence of supply chain issues in some sectors as well as the pass through of higher energy costs to various goods, it's likely that inflation remains elevated for longer than previously expected," CIBC adds.