As the quote suggests, the peak in oil prices is behind us, so the significant drop in energy components will bring inflation data back to normal. This is not an unexpected decline. Pricing in 40bps of rate hikes within the year during Walsh's early term was overly hawkish. For more details, check out the Space session I did with @168X_Fortune last week. We previously mentioned buying indices on the left side, then moving to individual stocks after validation. CPI and PCE are both validation data points, and Q3 looks worry-free for now. What we’ll continue to watch is whether oil prices (WTI watershed at 100) will once again drive inflation, thereby disrupting the yield curve.