Surprising Inflation Data Raises Concerns😯
The day began with some unwelcome inflation data out of Canada, where core CPI spiked massively to the upside despite expectations of a continued fall in September. The BoC's preferred core measures have rebounded to the fastest pace since July 2022, while US used car prices have also shown an unexpected 1.5% MoM jump over August. With WTI oil trading at above $90 and showing little signs of easing, we remain of the view that inflation has an outside risk of making an unwanted return before the year-end - ie. the 'higher for longer' camp that seems to have been largely vacated recently.
