Breaking Down Inflation Perception and Reality

October CPI in focus as market-based inflation expectations deviate from reality

Highlights

• October CPI in focus as market-based inflation expectations deviate from reality

• Asian equites hit two-month low

• Valuation, positioning, and sentiment measures all flagging a market at the extreme

• Canadian building permits provide a rare positive economic data point

Key Takeaways

CPI Report: Inflation and Shelter Metrics in Focus

• The CPI report due at 8:30 a.m. ET will be the big focus of the day. Markets will be looking for a confirmation of their newfound conviction that an inflation spike is around the corner, but we’ll be focused on any potential storm/strike impacts and, more importantly, how the real-time rental metrics are filtering into the shelter components.