Inflation is not going away. Here’s what that means for interest rates.

The Federal Reserve should accelerate the pace of interest rate hikes to curb the stubbornly high inflationaccording to a growing number of Wall Street analysts.

Aditya Bhave, U.S. economist at BofA Global Research, expects monetary policymakers to raise the Fed’s benchmark rate by 0.25 percentage points at each of the central bank’s next three meetings in December, January and March. Analysts at TD Securities also forecast three straight quarter-point hikes, up from two previous forecasts, as higher inflation signals that price pressures are widening in the United States.

The latest consumer price index showed that inflation rIt’s more than expected in October, up 0.4%.

“Inflation is not moving in the right direction,” TD Securities said in a note to investors Friday. “The October report not only surprised our own forecasts, but it also was not driven by one or two particular factors as has been the case in recent reports. Pricing pressures appear to be widening.”

Higher inflation in October was the third straight month where prices rose faster than expected amid supply constraints and abundant economic demand, according to EY-Parthenon chief economist Gregory Daco, who forecasts rate hikes for December and January.

“For any borrower, this will mean a high cost of borrowing for any type of consumer loan taken out,” Daco told CBS News. “A higher trajectory in federal funds rates will generally result in higher long-term interest rates and increase the cost of borrowing for consumers across the country.”

Interest rate traders rate the odds of a quarter-point hike at the Fed’s next Dec. 8-9 meeting at nearly 90%, and also see a better-than-even chance of another such hike at the Jan. 26-27 meeting, according to CME FedWatch.

Some Fed officials themselves have said tightening may need to be more aggressive to bring inflation back in line with their 2% annual target. At a conference in London on Tuesday, Fed Governor Christopher Waller said policymakers should consider a 0.50 percentage point increase in December, adding that a more modest increase “would put our credibility at risk.”

High energy prices continue to drive inflation, as does heavy corporate spending on data centers and other equipment to power AI.

“Together, these forces could keep inflation high through 2027 and further strain household purchasing power,” Daco said in a report.