Read the highlights of this week’s commentary from Helios:

September’s inflation report spelled trouble for the Fed and solidified market expectations of another 75 basis point hike in November. Monthly prices accelerated, rising 0.4%, ahead of August’s 0.1% rise. Over the last year, headline prices increased 8.2%, a slightly slower pace than in August, though core prices rose 6.6%, an unwelcome acceleration from 6.3% in August.

Consumer sentiment improved to a six-month high in the University of Michigan’s preliminary October report. However, it still remains at some of the lowest readings over the last few decades. Short-term inflation expectations increased for the first time since March.

While retail sales stopped growing in September as momentum in the consumer looks to be cooling. However, there were brighter spots in the report, including upward revisions to prior reports and a 0.4% gain among the “control group,” which is the part that enters into GDP calculations.

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