Why Doesn’t the Market Care about Inflation?

The past two CPI reports have seen core inflation rise pretty considerably. Headline CPI is running at 5.0%, core at 3.8%, and the past two month over month prints have been 0.9% and 0.7%. This to say, inflationary pressures even outside of base effects are clearly rising. With that said, bond yields since the April CPI report have fallen 25 basis point…