Yesterday, US CPI came in stronger than expected, coming in at 2.6% year-over-year. We think this move is unambiguously reflationary. We see this inflation was already priced-in recently in the bond market:

Hence, we think of the current CPI print to confirm our views mentioned before the print. To reiterate, we are likely in a rising inflation environment:

This CPI print also puts the US in the lead in terms of global reflation, with the highest inflation rate amongst the major currencies:

This is just confirmation of what asset markets have been telling us. We are still in a global reflation, led by the US economy. However, signs are emerging that we are at peak reflationary impulse, and we need to be vigilant.