Today’s inflation data has become the market focus. The numbers look good—CPI and core CPI year-over-year are unchanged from the previous reading, but the core monthly inflation rate is below expectations, which is a positive signal. Inflation is indeed cooling down, indicating that the rebound in November is not just a dead cat bounce. Looking ahead, if this trend can be maintained, it will be favorable for the rate cut cycle in 2026. However, that said, although December’s data looks good, it still doesn’t change the Federal Reserve’s stance of holding steady in January. The key will be how the data in the coming months develops; inflation needs to truly stabilize to dispel the Fed’s concerns.