WS #15912
Inflation remains stubbornly persistent across major economies, with US September CPI coming in at 3.7%, significantly above expectations, and French inflation rising to 3.1%, its highest level in three years. This data reinforces the 'higher for longer' interest rate narrative, dampening hopes for near-term monetary easing. The persistence of inflation, exacerbated by energy price spikes from the Hormuz crisis, is forcing markets to reprice rate cut probabilities, which is particularly damaging to growth stocks and rate-sensitive sectors like real estate.
Inflation Persistence
Inflation remains stubbornly persistent across major economies, with US September CPI coming in at 3.7%, significantly above expectations, and French inflation rising to 3.1%, its highest level in three years. This data reinforces the 'higher for longer' interest rate narrative, dampening hopes for near-term monetary easing. The persistence of inflation, exacerbated by energy price spikes from the Hormuz crisis, is forcing markets to reprice rate cut probabilities, which is particularly damaging to growth stocks and rate-sensitive sectors like real estate.