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\’If you\’re someone who\’s going to the grocery store on a regular basis or even to the gas pump, and you\’re noticing that those prices are rising, that doesn\’t always necessarily count as inflation.
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Yields for U.S. government debt on Friday were drifting lower again and are near lows not seen since early March, as fixed-income investors deem recent inflation data as supporting the thesis that rising prices will prove a temporary phenomenon.
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You wouldn\’t expect stocks and bonds to rise after a hotter-than-forecast inflation reading in a market that has been obsessed with the I-word, yet that\’s what happened on Thursday.
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