The CPI data dropped as expected, which should have been something to celebrate. But with the renewed conflict between the U.S. and Iran, the declining inflation data has turned into a 'chicken rib' situation—something of little value. The drop in inflation was originally due to falling oil prices. However, whether it’s the potential re-blockade of the Strait of Hormuz or the U.S. claiming to impose a 20% tax, both suggest a significantly higher probability of oil prices rising further from current levels. From the inflation data, the broad CPI came in much lower than market expectations, dropping from 4.2% last month to 3.5%. If the U.S. and Iran can maintain peace, next month’s broad inflation could drop even further. But now, with the market worried about rising oil prices, this decline in inflation doesn’t help the Fed’s monetary policy decisions. Core CPI also came in below expectations, dropping from 2.9% to 2.6%, which shows that the inflation caused by rising oil prices has eased. This is still solid data, especially with the CPI monthly rate dropping to -0.4%. Even if the market couldn’t predict a rate cut, it could at least expect the likelihood of a Fed rate hike to cool down. But now, these two decent data points are almost meaningless—unless Trump pulls a TACO. @Gate Crypto, US stocks, Hong Kong stocks, Korean stocks, gold, CFDs, prediction markets—all-in-one trading platform.