Although the December rise in the overall consumer price index (CPI) equaled a nine-month high, core CPI was a bit softer-than-expected, enough to ignite an early rally in both stocks and bonds. Headline CPI rose +0.4% for the month, the highest since March, and +2.9% year-over-year, matching a seven-month high. Frequently volatile energy prices were the main culprit, with the +2.6% increase accounting for over 40% of the headline gain.

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