Hot inflation remains the order of the day with a 0.9% increase in the Consumer Price Index reported on Tuesday followed by a 1.0% Produce Price Increase reported today. About 0.42% of the CPI number was due to used car price increases. But even with that taken out of the equation it would still have met expectations of 0.5%.
The market spent most of the day yesterday arguing with itself over the significance of the CPI number. By the close we saw the major market indexes reverse in bearish fashion on higher volume following a poor 30-Year Treasury auction.