After the release of yesterday's CPI data, which was completely in line with market expectations, gold spiked, the dollar index closed flat, $BTC weakened, and U.S. stocks showed mixed performance. The same number triggered different reactions across the market. Different data points answer different questions. Inflation data, represented by CPI and PCE, has the most direct impact on interest rates and is what we usually focus on the most. CPI reflects the prices consumers are currently paying, PPI reflects the sales prices producers are receiving, and PCE is the official inflation gauge anchored by the Federal Reserve. Meanwhile, employment, wages, and inflation expectations determine whether this price pressure is sustainable. For short-term market movements, the most important factor isn’t the absolute level of the data but the difference between the data and market expectations. After the data is released, the first things we should look at are the 2-year U.S. Treasury yield and the dollar, as they most directly reflect whether the market is repricing the Fed. From a policy perspective, a mild CPI reading can only change probabilities, not the overall path. For stocks, CPI impacts valuations more, while PPI affects corporate profit margins. So, the real thing worth trusting isn’t a single number but whether core inflation, producer prices, wages, and employment improve together over three to six months. To put it simply: CPI decides how the market trades tonight, PPI determines how companies make money next quarter, PCE dictates the Fed’s next move, and Treasury yields provide the market’s final answer.