Inflation Update

In last night's post we featured December import and export prices and the Producer Price Index -- each missing expectations -- and reiterated our stance that it's simply a matter of time.

This morning's release of the December Consumer Price Index -- with core month-over-month and year-over-year readings at the very high-end of expectations -- better reflects current conditions, in our view:

Bonds, utilities and REITS are all trading lower on the news...