We’ve been warning about the prospect of higher for longer inflation in the US for many months, but even we hadn’t predicted this. Headline inflation jumped 0.8% month-on-month versus the 0.2% consensus while the core (ex food and energy) component rose 0.9% versus the 0.3% forecast. This is the highest headline MoM reading since September 2009 and the highest core reading since 1981. It leaves the annual rates of inflation at 4.2% and 3% respectively. The details show used car prices were the big surprise, jumping 10% MoM while new vehicles prices rose 0.5% – this potentially offers more evidence of the supply ... (full story)