Today’s US inflation report sent everything rocketing higher as investors priced out the risks of a further 75 basis point rate hike from the Fed in December and reduced their expectations about the terminal interest rate. The annual CPI print of 7.7% was much weaker than expected and represented a sharp drop from 8.2% recorded in the previous month. For inflation watchers, this was good news. Also good is news is the recent fall in some energy prices. Crude oil’s break of this trend line may lead to further falls in oil prices, and thus help lower inflation even more.