What’s Behind the Slowdown in U.S. Inflation

From blog.pimco.com

October’s U.S. Consumer Price Index (CPI) inflation data was even softer than many observers had expected, with core inflation gaining just 0.3% month-over-month (m/m) versus consensus expectations of 0.5%. Pre-holiday retail discounting, a decline in used car prices, and a welcome easing in rental inflation were key drivers of the overall decline in CPI. While we would caution against calling a peak in U.S. inflation, as we suspect some of the categories that were particularly weak in October will temporarily re-accelerate in the months ahead, the October data was a welcome sign that the central bank’s actions ... (full story)