New Highs for CPI

December headline CPI rose at 7.0% annually, its fastest rate since June 1982 when the 10Y yielded 14.44%.

The index for all items less food and energy rose at 5.5% annually, its largest increase since February 1991.  Both indices showed broad-based increases with almost all categories – most of which are sticky and not prone to declines – registering multiples of the Fed’s traditional 2% target.

Energy continues to lead the charge, though as expected, its YoY increase continues to ebb.

Algos, driven by the usual well-timed collapse in vol and a bump in oil/gas, are up moderately even after data that does nothing to alter the Fed’s taper and rate hike plans.

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