Jiahuang Capital economists said US October CPI almost confirms their expectation that the Fed may hike again. They caution further tightening may not produce disinflation: supply-driven factors are unlikely to respond to higher rates and a large portion of inflationary pressure is already embedded in pass-through. Energy price spillovers are spreading; goods prices remain firm, supported by elevated freight costs; services inflation is accelerating partly due to energy.

2026-11-11

Jiahuang Capital economists said US October CPI almost confirms their expectation that the Fed may hike again. They caution further tightening may not produce disinflation: supply-driven factors are unlikely to respond to higher rates and a large portion of inflationary pressure is already embedded in pass-through. Energy price spillovers are spreading; goods prices remain firm, supported by elevated freight costs; services inflation is accelerating partly due to energy.