Oct Core CPI +0.28% MoM distorted by 30% rise in used car prices (ummm...no way). Sets stage for inflation to "fall like a rock" rest of year

The Oct CPI report is better than appears at first glance. And we think this is supportive of stocks continuing to rally into year-end, albeit with the risk of some eventual pause as flagged by Mark Newton.

The reason is that the Core CPI MoM of +0.28% is distorted by a puzzling 30% annualized surge in used car prices. The 2 largest contributors to the rise in Core CPI MoM:- Shelter +0.17% cont. to growth (CTG)- Used cars +0.06% CTG We all know used car prices are ...

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