- The inflation numbers came in close to the consensus, but year-over-year core inflation came in slightly high at 2.4%.
- Investors are pricing in extremely low inflation over the next 10 years. Is this an overreaction to short-term news? Yes, I think so.
- I Bond investors can expect a lower variable rate coming at the May 1 reset. My recommendation: Buy I Bonds, up to the purchase cap, before May 1.
U.S. inflation continued in the “moderate zone” in February, but rising turmoil in the stock and commodity markets could bring a short-term swing to deflation in coming months.
The Consumer Price Index for All Urban Consumers rose 0.1% in February on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, “headline” inflation increased 2.3%.
Read my full analysis on SeekingAlpha.com
And TIP is down 7% this week!