China International Capital Co said US October CPI (seasonally adjusted MoM) rose 0.4% (Sep 0.6%); core CPI SA MoM rose 0.3% (Sep 0.3%), both above market expectations. Core CPI SA MoM has recorded a 0.3% increase for a third consecutive month, supporting further Fed tightening. While Fed Governor Waller has not ruled out a 50bp move in December, the firm judges policy is not clearly behind the curve and financial conditions have tightened marginally, so the necessity to accelerate hikes is limi

China International Capital Co said US October CPI (seasonally adjusted MoM) rose 0.4% (Sep 0.6%); core CPI SA MoM rose 0.3% (Sep 0.3%), both above market expectations. Core CPI SA MoM has recorded a 0.3% increase for a third consecutive month, supporting further Fed tightening. While Fed Governor Waller has not ruled out a 50bp move in December, the firm judges policy is not clearly behind the curve and financial conditions have tightened marginally, so the necessity to accelerate hikes is limited; it maintains a base case of a 25bp December hike and says the tightening pace remains gradual.