The U.S. inflation report for March had non-seasonally adjusted inflation rising 0.43%, enough to overwrite 5 months of deflation for the September 2015 to March 2016 adjustment period. Inflation ended up rising 0.08% in that six-month period, meaning the Treasury will reset the I Bond’s variable rate to 0.16% on May 1.
That’s down from the current 1.54%, but it is good news for I Bond holders because a negative variable rate wipes out the fixed rate up to that amount. I’ve posted the new numbers on my ‘Tracking Inflation and I Bonds‘ page.
I’ve also posted a more in-depth analysis at SeekingAlpha.com.