Inflation Swaps Are a Way to Price in Rising Expectations

Consumer price index for January to be released tomorrow. CPI is supposed to come in at 6.2% year over year, down from 6.5%. On a month over month basis, it's supposed to rise 0.5%. But we all know that the Fed really isn't watching headline CPI right now. It's looking at core inflation and there you're supposed to see inflation drop 5.4% core with strip out energy and food. That would drop 5. 4% to 5.7% and remain steady on a week-to-week basis at 0.4%.