The October CPI report strongly implies a soft landing for the American economy.

Policy implications
The Federal Reserve is poised to keep rates steady at its December meeting as it attempts to set policy conditions that support a continuation of the economic expansion. But refraining from any rate hike will not alter the Fed’s tightening bias in the December statement, nor will it change its rhetoric around lifting rates if inflation were to prove far more stubborn or unexpectedly reaccelerate. While our forecast for the consumer price index for next year implies a decline to 2.5% in the top-line figure by the end of the year, it will be some time—we think June—before the Fed is comfortable altering that policy stance and will cut rates.The data
Beneath that encouraging and top-line data, inflation excluding food costs had no increase in October and was up by 3.2% from one year ago. Excluding energy, inflation increased by 0.2% monthly and was up by 3.9% on an annual basis. If one excludes, food, energy and shelter, inflation increased by 0.1% and 2%, respectively. What that means is that 44.5% of the total index is now advancing at a 2% annual pace, which underscores our call for the Fed to end its rate hike campaign. Energy costs declined by 2.5% on the month, while energy commodities fell by 4.9% and gasoline by 5%. Overall commodity prices declined by 0.4% and were up by a paltry 0.4% on a year-ago basis.