Read the highlights of this week's commentary from Helios:
Inflation came in better than expected in October, with headline CPI rising 0.4% in the month and 7.7% over the prior year. The yearly number is down from 8.2% in September and was better than the median economist forecast of 7.9%. Core CPI, which excludes food and energy, dropped to 0.3% in the month and 6.3% over the prior year, down from its recent September peak of 6.7%. Shelter continued to push higher, growing 0.8% in October, though monthly gains in rent and owners-equivalent rent both finally started to slow.
The surprise good news on the inflation front caused markets to rally with the S&P 500 gaining 5.54% and the 10-year yield falling 28 basis points on Thursday.
Consumer sentiment retreated in early November, hitting a fresh four-month low amid rising inflation expectations.
Want to learn more about Helios Quantitative Research? Click Here to schedule a meeting with one of our representatives!