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MNI Inflation Insight-Nov 2021: Another Blow To “Transitory”

MNI Inflation Insight-Nov 2021: Another Blow To "Transitory"

EXECUTIVE SUMMARY:

  • A well-above-consensus October U.S. core CPI reading struck yet another blow to the "transitory" inflation thesis.
  • Arguably the "transitory" argument still has life yet, looking at market expectations for the long-term Fed funds rate and inflation.
  • But the October reading increases the probability that the Fed will announce an acceleration in its taper pace at the December meeting.


PLEASE USE THE FOLLOWING LINK TO ACCESS FULL PDF ANALYSIS:

USInflationInsightNov2021.pdf



Source: Bloomberg, MNI


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