Lowest Rates in Months After Inflation Data, But Volatility Risks Remain

Lowest Rates in Months After Inflation Data, But Volatility Risks Remain

There aren't many scheduled economic reports that are as hotly anticipated as was today's Consumer Price Index (CPI).  The market's reaction more than validated the anticipation.  What does all this mean for rates? Inflation is always an important consideration for interest rates .  Higher inflation means higher rates, all other things being equal and 2022 has seen the biggest spike in decades to the highest inflation levels since the 80s and the highest mortgage rates in at least 20 years. The market and consumers have been waiting for some sign of relief when it comes to rates.  Rates, in turn, have been waiting for some sign of relief on inflation.  CPI is the most heavily traded inflation report.  If there were only one place to receive an update on the fight against inflatio