Good Wednesday morning. VRA Alert: yesterday we added to our position in GameStop @ $21.90, which lowered our cost basis to $25.58.

Breaking: following yesterdays inflation-friendly PPI, this morning we got the July CPI report and it did not disappoint, matching the estimates of economists with .2% m/m core inflation and .2% m/m headline inflation. For the year, consumer prices rose 2.9%, beating estimates of 3%.

Equity markets are slightly higher on the news (and headed higher).

Know this; plummeting 10 year yields have been screaming “inflation is being replaced by disinflation” over the last year with 10 yr yields collapsing from last Octobers 5% to this mornings yield of just 3.85%. The markets lead…and the Fed follows. Whether the Fed cuts by .25% or .50% next month is the only question remaining.

Next up: with China/Asia (and now Europe) aggressively exporting “deflation” to the US and the rest of the world, we’ll soon learn that the Fed is rather ridiculously behind ...