The January headline consumer price index (CPI) came in at 2.5%, which is
near a 5-year high. What happened to deflation? As a result, real interest
rates declined deeper into negative territory or in the case of the 10-year
yield, went from positive to negative. No this isn't a commodity-driven story.
The core CPI (ex food and energy) has been above 2% since the end of 2015 when
commodities were in the dumps. Inflation is perking up and couple that with
a Fed that pursues rate hikes
