The Kobeissi Letter, a markets commentary publication, stated on X today, November 12, 2026, that "US inflationary pressures are broadening: Core CPI inflation surged to a 3-month annualized rate of +3.75% in October, its highest reading since April 2024. This marks its 3rd consecutive monthly increase, up from +1.64% in July. At the same time, core services less shelter inflation, also known as Supercore CPI and closely monitored by the Fed, rose to a 3-month annualized rate of +5.45%, its highest since mid-2024. The weighted proportion of CPI components rising at an annualized rate above 2% soared to 76% last month, the largest percentage since August 2022. This figure has risen +17 percentage points since July, marking its sharpest 3-month increase since early 2021. The Fed's fight against inflation is far from over."
This report on rising inflationary pressures comes as the S&P 500 rallied 1.3% today. Recent Gokhshtein Media coverage noted that the bond market has been pricing out a March Fed rate cut, suggesting expectations for monetary policy tightening might be moderating. However, the new inflation data could challenge these assumptions.
The publication's statement implies that the Federal Reserve may face renewed pressure to maintain a hawkish stance or even consider further tightening measures, contrary to any market expectations for cuts. Investors will likely watch upcoming Fed communications and further inflation data closely for signs of how policymakers will respond to the broadening price increases.
