Chart of the week – Inflation trending towards a new paradigm
This week’s better than expected US CPI print saw inflation fall to 3.2 per cent in October, down from 3.7 per cent in September and better than expectations of 3.3 per cent. This was very clearly good news for risk assets, with further rate hikes this year now all but unthinkable. It also heightened hopes that the Fed is moving closer to ‘pivoting’ its policy towards rate cuts.
More from this week:
- Moving ‘EM up
- US earnings optimism
- A year of two halves in markets
- Bitcoining it in