CIBC Research discusses its reaction to toady's US CPI report for the month of November.
"Inflation reached another multi-decade high in the US in November, as broad-based price gains sent total inflation up to 6.8% y/y, on a 0.8% monthly gain. That was in line with the consensus expectation and included increases in energy and food, along with gains in core categories. Excluding food and energy, core inflation rose by 0.5% m/m to send the annual rate up to 4.9%, with widespread gains ranging from new and used vehicles, to airline fares and shelter, supporting the advance," CIBC notes.
"With inflation at a lofty pace, the Fed is set to accelerate its QE tapering timeline at the December meeting, to finish in the early spring, and to allow for a rate hike in Q2 2022, when the winter wave of Covid could be behind us," CIBC adds.