CPI Inflation Still Soft, Fed Not Yet Deterred

From blogs.uoregon.edu

The CPI report for September revealed that inflationary pressures remain muted. To date, weak inflation numbers have not deterred the Fed from hiking rates, but instead moderated the pace of rate hikes to gradual. I expect this will continue to be the case. Does this mean the Fed has gone crazy? Core CPI inflation was again soft in September; the annualized one month gain was just 1.4%. The annual change remains above 2% (remember that PCE not CPI is the Fed proffered price gauge; in, recent year PCE inflation has been running below CPI inflation) but will roll over further if these soft monthly numbers continue. Shelter inflation ... (full story)