‘Peak Inflation’ Narrative Gets Another Big Boost

Let the celebration continue. Days after a cooler-than-expected US CPI report triggered a spectacular rally on Wall Street, producer price figures for October printed well below consensus, in what was sure to be viewed by market participants as additional evidence of peak inflation. PPI for final demand rose just 0.2% MoM, data out Tuesday showed. That was just half the expected increase (figure below). In addition, September's monthly print was revised markedly lower. Excluding food and en

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2 thoughts on “‘Peak Inflation’ Narrative Gets Another Big Boost”

Lucky i placed bets on a fully divided government and lost. A win win. Thank you pollsters! Thank you America nice foothold you got there. What is God Fed gonna do now?

FOMC will keep hiking until the funds rate is above annualized core rate and is convinced the downward trend of the latter is real. With signs that peak inflation is behind us, it also told us its timetable for doing that has been extended. So 50bps in December, another 50 in February, and then a pause to wait and see. Or maybe 50/25/25/pause. Either way, I still think the Fed is eyeing an additional 100bps in the funds rate.