Jiahuang Capital economists said US October CPI almost confirms their
expectation that the Fed may hike again. They caution further tightening may not
produce disinflation: supply-driven factors are unlikely to respond to higher
rates and a large portion of inflationary pressure is already embedded in
pass-through. Energy price spillovers are spreading; goods prices remain firm,
supported by elevated freight costs; services inflation is accelerating partly
due to energy.
