Inflation Just Did Something It Hasn't Done in 15 Years, and It Could Trigger a Big Move in Interest Rates (and the Stock Market)
Inflation is an important economic indicator, and understanding its impact can help investors make more informed decisions. It's measured by the Consumer Price Index (CPI), which tracks the change in price of a basket of goods and services over time.
The U.S. Federal Reserve is tasked with controlling inflation, which normally means a CPI increase of 2% each year. Big moves above or below that inflation target can have serious implications for asset prices, from stocks to housing.
Last year, the CPI fell by the largest amount since 2009. The 2009 instance marked the beginning of one of the longest winning streaks for the S 500 (SNPINDEX: ^GSPC) index in stock market history. Could it happen again?
Source Fool.com