🇺🇸Cable FX Macro Weekly Note: U.S. Nov. CPI

**As Seen in Risk In The Week report 12/09/2022, subscribe at cablefxm.co.uk/reports

U.S. consumer prices eased further in October, the headline came in at 7.7% vs the consensus of 7.9% and the prior of 8.2% Y/y. The core print eased to 6.3% from 6.6% Y/y. As we have seen for some months, food and services prices have added to their contributions to the headline, energy has given some ground. Services prices contributed to 3.9pp of the headline, up from the 1.9pp seen a year before. We remind you that the October release from 2021 was what led the Fed to start thinking that inflation might have been stickier than previously thought, a few months later, the Fed would start hiking rates. The October figures showed some stabilization in energy prices as they had been falling for the last three months, gasoline prices increased by 4.0% M/m, up from prior -4.9%. Economists at Wells Fargo say they expect both headline and core measures decelerating in November as energy and used car prices weight on the index, however, food prices are expected to continue rising firmly. The desk will be attentive to the split between goods and services inflation as the latter has kept the Fed cautious, Wells Fargo sees core goods declining by 0.2% M/m, core services rising by 0.6% M/m.