CIBC Research discusses its reaction to today's US CPI print for the month of September.
"The September inflation data for the US showed that core price pressures remained red hot, adding urgency to the Fed's rate hiking path. Total prices advanced by 0.4% m/m (vs. 0.2% expected), as higher food prices combined with strength in core prices, which left annual inflation at 8.2% vs. 8.1% expected. Core prices were up by 0.6% m/m (vs. 0.4% expected), extending the momentum seen in August. The rise in core prices reflected ongoing increases in the shelter component, which lags developments in the housing market by around a year," CIBC notes.
"But price pressures were broad based, compounding pressure on the Fed to act, as medical care services, car insurance, new vehicles, and household furnishings/operations also rose strongly. That left annual core inflation three ticks higher at 6.6% (vs. 6.5% expected)," CIBC adds.