Can you tell me about the record US inflation for December?

US inflation for the month of December 2021 came in at a 39-year high of 7%. These levels were last seen in the Paul Volcker era. However, markets were pleased that the inflation was actually better than the Bloomberg consensus estimate of 7.1%. In the absence of negative surprises, the global equity markets actually rallied on 12th January.

With inflation nearly 10 bps below the expected number, treasury yields also tapered to 1.7357% from above 1.8%. Markets are expecting front ending of rate hikes by the Fed in March 2022, but now hope that a slightly moderated inflation may probably delay the rate hikes or at least reduce the intensity.