With oil prices dropping, moderating the heavy influence energy has had on the economy, experts thought that inflation would drop. It didn't. It got worse.
Not by a huge amount in one sense—the increase was 0.1 percentage points. But it was enough of a shock, given expectations, to send markets wavering. As of about 10:15 a.m., the S&P 500 was off about 2.6%, the Dow down 2.3%, and Nasdaq losing 3.2%, according to data from S&P Global Market Intelligence.
"Misses on both headline and core are disappointing as this bout of inflation proves to be anything but 'transitory,'" Cliff Hodge, chief investment officer for Cornerstone Wealth, said in an emailed statement.
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