---
title: October 16, 2026 - Inflation is back
description: This week, inflation makes a roaring comeback in the U.S. as mid-term elections are just around the corner
image: https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/og/OG_McMahon_1200x628_EN.jpg
---

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# Macro Playlist

 The economic ideas driving markets.

 Every week, Sébastien Mc Mahon and his team deliver their carefully selected economic analyses and market outlooks.

## October 16, 2026 - Inflation is back

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## Opening Track

The week in review

This week, inflation makes a roaring comeback in the U.S. as mid-term elections are just around the corner

<iframe class="opening-video margin-bottom-36" src="https://www.youtube.com/embed/C0V0RZoNwyE?si=-K05ody3l2I8W6dC"></iframe>

[Download slides](https://mcmahon.ia.ca/hubfs/Hebdo_20261016_EN.pdf)

<iframe style="border-radius: 12px; margin: 0px auto; display: block;" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture" xml="lang" src="https://open.spotify.com/embed/playlist/4ffEtbOVvGSPEhZyrdL6XT?utm_source=generator&amp;theme=0" width="560" height="352" frameborder="0" allowfullscreen loading="lazy" data-testid="embed-iframe"></iframe>

![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/vital_signs.svg)

## Top of the Charts

Chart of the week | Inflation is back with a vengeance in the US.

And the timing, just ahead of the midterms, could hardly be worse.

This week’s CPI and PPI reports showed just how powerful the oil shock has become. CPI bounced to 3.7%, while PPI hit a four-year high of 6.3%. More importantly, the pressure is broadening.

That matters. Higher energy prices don’t stay at the gas pump. They raise the cost of transporting and producing goods, while also squeezing service providers.  
And we learned something important in 2021-22: once inflation becomes broad-based, the psychology starts to change. Businesses expect costs to keep rising and bring price increases forward, making the shock more persistent.

So the consequences are both political and economic.

The odds of a blue sweep in November are rising. And for investors, the question is shifting from “how high will inflation go?” to “how much growth will it ultimately destroy?”  
That could become one of the defining macro questions for 2027.

![U.S. -- PPI & CPI EN](https://mcmahon.ia.ca/hs-fs/hubfs/U.S.%20--%20PPI%20%26%20CPI%20EN.png?width=800&height=600&name=U.S.%20--%20PPI%20%26%20CPI%20EN.png)

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## Featured on Air

Quick access to our latest media appearances

### Canadian youth employment declines in September

 BNN Bloomberg – October 9 2026 

[Access here](https://www.bnnbloomberg.ca/video/shows/the-street/2026/10/09/canadian-youth-employment-declines-in-september/)

### 'Regime change for investors': Rising bond yields make fixed income attractive again

 BNN Bloomberg – October 15 2026 

[Access here](https://www.bnnbloomberg.ca/investing/2026/10/15/regime-change-for-investors-rising-bond-yields-make-fixed-income-attractive-again/)

<iframe style="border-radius: 12px; margin: 0px auto; display: block;" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture" xml="lang" src="https://open.spotify.com/embed/playlist/4ffEtbOVvGSPEhZyrdL6XT?utm_source=generator&amp;theme=0" width="560" height="352" frameborder="0" allowfullscreen loading="lazy" data-testid="embed-iframe"></iframe>

![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Sebastien_McMahon.png)

## Sébastien Mc Mahon

Chief Economist, iA Financial Group

![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Etienne_Bergeron.png)

## Étienne Bergeron

Economist, iA Financial Group

[About the team](https://mcmahon.ia.ca/en/about-us)

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