Tuesday’s CPI report came in a touch hotter than expected at 3.2% on the headline and 3.8% on the core. Analysts were looking for 3.1% and 3.7%. Bonds sold off on the news as investors started to project the likelihood of later rate cuts. Some analysts will say that this is the beginning of a big resurgence in inflation or a sign that disinflation isn’t entrenched, but the early 2024 stickiness in inflation is largely unsurprising and doesn’t change the broader trend here which is to the downside. It’s worth keeping the big picture in mind here as we look at one month of inflation data and that trend is still ... (full story)