US CPI response, with core surprising to the topside the November FOMC is very much live

<p>A response to Wednesday's US CPI report, the headline was unremarkable but the core rate jumped to a faster rise than was expected (there's a but on this, I'll come to that in a moment). ICYMI:</p><ul><li><a href="https://www.forexlive.com/news/us-august-cpi-06-mm-versus-06-mm-expected-20230913/" target="_blank" rel="follow">Core CPI m/m +0.3% versus +0.2% expected. Last month 0.2%</a></li><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-us-inflation-runs-a-touch-on-the-hot-side-20230913/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap: US inflation runs a touch on the hot side</a></li></ul><p>As for the 'but' on that +0.3% m/m core results, in their response piece Bank of Montreal point out that:</p><ul><li>on an unrounded basis the print was 0.278% m/m. This brought the YoY pace to its lowest level since September 2021 at 4.3% from 4.7% – matching forecasts.</li></ul><p>Bolding is mine. Yes, hotter than expected but not by as much as the +0.3% would suggest. </p><p>BoM go on to note that the strength in the ex-shelter &amp; rent measures. And :</p><ul><li>the 0.278% MoM core print was close enough to what the market was looking for that the data represents more of the passing of an event risk rather than a macro game changer.</li><li>The Fed won't be hiking next week, but … November is still very much a "live" rate decision.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.