Rebel Capitalist News WTF Is Going On With The New CPI Report?
Jul 15, 2025
The latest Consumer Price Index report reveals unexpected shifts influencing treasury market dynamics. There's a deep dive into the relationship between interest rates, growth, and inflation expectations, challenging common perceptions. The impact of rising energy prices on the economy sparks discussion on business growth strategies. Additionally, insights on enhancing YouTube channels and leveraging AI for business success offer listeners practical tips for navigating today's market.
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Unexpected Treasury Yield Surge
- The 10-year Treasury yield jumped about 10 basis points shortly after the CPI report release.
- This surge is unusual given the CPI matched expectations, indicating markets react to factors beyond headline inflation data.
Tariff Impact on Inflation
- The recent CPI increase aligns with predictions about the impact of tariffs causing a one-time goods price bump.
- This price rise offset by slight service price declines results in a moderate inflation effect, not runaway hyperinflation.
Shelter Inflation's Big Role
- Shelter prices rose modestly month over month, but base effects suggest annual shelter inflation will likely decline.
- Since shelter composes about 33% of the CPI, this decline is crucial for overall inflation trends going forward.