US Consumer Price Index (CPI) rose 6.2% in October 2020, marking the highest level of inflation since 1990. The print, released on Wednesday 10th November 2021, outstripped the Bloomberg consensus survey of 5.9%. The central bank mantra of inflation being transitory is becoming harder and harder to swallow. The fact that the market keeps being surprised by inflation indicates that something is missing from market expectations. We believe that supply-side shocks are both larger and more persistent than the market had expected.
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