Today Wall Street witnessed one of the steepest one-day decline in recent times . That's saying a lot given that we are still in 2022 where there is no shortage of steep declines. Not a very surprising outcome after the CPI numbers for August were released this morning. Investor sentiment is perhaps reflecting their lack of confidence in inflation control as the CPI numbers were worse than expected. Overall CPI was expected to decline but it rose in spite of decline in oil prices. The scope of the problem becomes clearer when one looks at the core CPI numbers (excludes oil and food prices) that climbed a lot more than expected. It appears to be a very broad problem that might take long time to show sustained decline in inflation.
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