US inflation surge may remain 'uncomfortably high' as CPI reaches 6.2%

Investors debate Fed decision

clock • 2 min read

US inflation has surged to its highest level since 1990, as October’s consumer price index recorded a year-on-year increase of 6.2%, and a month-on-month increase of 0.9%.

The figure shoots past consensus expectations, which had pegged the rise at 5.8%, while core inflation figures, excluding food and energy, rose 4.6% compared with last year. Energy costs have soared 4.8% over the past month alone, with the figure up 30% year-on-year. Hussain Mehdi, macro and investment strategist at HSBC Asset Management, suggested it is possible for this inflationary peak to remain "uncomfortably high". "Used car prices look set for further gains, shelter costs are picking up, while services demand is recovering from the Delta Covid wave," he explained. "We are al...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 19 April 2024 • 2 min read
Why non-transparent managers are behind most failed acquisitions

Why non-transparent managers are behind most failed acquisitions

‘They don’t understand the importance of culture and cohesion’

Rami Cassis
clock 12 April 2024 • 3 min read