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...

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