We've talked about the base-effect distortion of the latest data when compared to where we were a year ago. So, sure, when we look at year-on-year CPI north of 4% (core [ex-food and energy] at 3%) no sweat. Ah, but month-over-month? Of course that's meaningful.
Keeping this morning's note brief and to the point (we'll dig deeper into the inflation topic in this week's main message later today [tomorrow at the latest], as it's potentially the most important thing for investors to get right going forward), I'll just point out that a .8% jump (.9% for core) in a single month is no small deal, to put it mildly!
Bonds responded accordingly (10-year yield this morning):
“Simplicity rules everything worth while, and whenever I have been up against a business proposition which, after taking thought, I could not reduce to simplicity, I have realized that it was hopelessly wrong and I have let it alone.”
-- quoted from Daniel Yergen's The Prize
Have a great day!