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Markets are looking everywhere for inflation as yields rise, CPI on deck Wednesday
With the sharp move higher in interest rates, markets have been on the lookout for inflation creeping up. So Wednesday’s December CPI will be important even if it still shows a muted rise in the consumer price index. According to Dow Jones, economists expect an increase of 0.4% month over month, and 1.3% year- over- year. Core CPI, less food and energy, is expected to be up 0.1% or 1.6% year-over-year, versus 0.2% and 1.6% in November. The rapid move higher in bond yields since the start of the year has been accompanied by rising inflation expectations. The 10-year breakeven, a bond market instrument for inflation ... (full story)