No need to shelter from higher US inflation ?

By: Macro Strategy Team

January 5, 2026

By: Macro Strategy Team

Macro Strategy Team

November’s two-for-the-price-of-one inflation print beat expectations even more than we estimated.

This was partly due to a much sharper than expected easing in inflation from rents, which has been the persistent reason for the stickiness of inflation above the 2% target.

Data on newly rented properties (most recently from Q2) has been warning of much softer shelter inflation for some time. So perhaps the distorted collection process has led to a greater weight of new rentals this time around.

Nevertheless, one source of inflation stickiness does finally appear to be abating.

Author Bios

Macro Strategy Team

The Macro Strategy team provides cross-asset research and market intelligence across developed and emerging economies. Their expertise in FX, equities, and fixed income is complemented by proprietary indicators on investor behavior, inflation, and sentiment—turning complex data into actionable insights that help clients anticipate risks and capture opportunities.

1. Peter L. Bernstein Award for Best Article in an Institutional Investor Journal in 2013; Bernstein-Fabozzi/Jacobs-Levy Award for Outstanding Article in the Journal of Portfolio Management in 2006, 2009, 2011, 2013 (2), 2014, 2015, 2016, 2021; Graham & Dodd Scroll Award for article in the Financial Analysts Journal in 2002 and 2010. Roger F. Murray First Prize for Research Presented at the Q Group Conference in 2012, 2021, 2023. Harry M. Markowitz Award for Best Paper in the Journal of Investment Management in 2022, 2023. Doriot Award for Best Private Equity Research Paper in 2022.