The last CPI figure is showing deflation "right now". But the market is preparing for inflation in late November, December. Every single inflation flag has been ticked since middle Sept. The soft commodities has just begun rising. Then durable goods are further down the supply chain.
I can calculate inflation in REAL TIME, and I can tell you that monetary inflation began in middle September. The CPI numbers, when released are 6 weeks out of date.
So what I am telling you is, the November CPI (year over year) will be much higher than anyone expected. In December, we will see a higher inflaton number than last July.
Already, China and Australia are showing some inflation pressure, which is why Australia raised interest rates 50 basis points already.