U.S. CPI report: Core inflation remains subdued in October

Key points: Consumer prices increased in line with expectations in October as energy prices rebounded during the month. Yet, excluding energy and food prices, core prices were slightly softer than expected. The price of services (amongst which the shelter component belongs ) remained muted while the price of goods rebounded due to some volatility in the price of used cars. As a result, inflation moved up from 2. 3 % to 2. 5 % while core inflation lost 0.1pt to 2. 1 %. Looking forward, we expect inflation to remain subdued as rent prices may ease further while lower oil prices will also push headline inflation lower. At this point, the net impact of tariffs appears to be rather limited.