US core inflation remains high

US core inflation remains high

Core inflation in the US surprised markets by remaining higher than expected in September which caused a sharp sell off in equities and bonds. The inflation number of 8.2% was higher than the 8.1% which the market was looking for. Whilst this was a small miss it remains indicative of the direction of travel for inflation and thus indicative of how aggressive central banks are going to have to get with rate hikes to control it which remains the reason why equities and bonds sold off on the news.