Inflation has been the source of bad news for the most part of this year, but in September it got worse. The spike from 6.7% year-on-year in August to 7.4% YoY in September and 7.5% YoY in the beginning of October outpaced the latest 7.3% YoY expectations and is 0.3 percentage points higher than the rate we and the market expected only a month ago. Most importantly, core CPI jumped from 7.1% to 7.6%, the highest level since April 2016. Here are our key observations and takeaways from the latest CPI print: Both headline CPI and households' inflationary expectations are now back to levels seen in 2016, when Russia was ... (full story)