MoM CPI Unchanged!

Good morning. Today's data indicates that consumer prices in the U.S. were UNCHANGED during the month of February. If I'm not mistaken, energy and commodities prices were surging to historical levels throughout February. Bloomberg news is citing dropping fuel costs as the cause of last month's CPI, but whatever the cause may be, inflation rate is most certainly NOT unchanged.



Looking at initial market reaction to the CPI data right now, the dollar seems to be slightly bid, as cooling inflation should support the greenback. The yield curve is also flattening. But considering that Fed day is just around the corner, I think the market will interpret today's CPI data as giving Bernanke more room to cut rates. This should be bullish for both stocks and commodities (extra bullish for mining stocks).