
CPI continues to rebound, but core CPI has decreased. The market is very happy, but perhaps a bit too early to celebrate

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In December, the U.S. CPI rose by 2.9% year-on-year, and the core CPI rose by 3.2% year-on-year, both lower than expected. Market expectations for a rate cut by the Federal Reserve have increased, with the probability of a rate cut in June rising to over 70%, leading to a decline in U.S. Treasury yields and an increase in U.S. stock futures. However, analyzing the breakdown and trends of the CPI data indicates that the market's optimism may be premature
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