Hmm, CPI rose to 8.5% instead of the 8.4% estimate. Not sure where you are getting "under expected" from. Also, inflation isn't necessarily bad for markets. What markets don't like is if the fed has to respond.
I think a lot of people have this doom fantasy of runaway inflation in the US, but it's likely to slow down quicker than people realize. Monetary supply is tightening (mortgage rates touching 5% now), and the supply chain is slowly getting back to normal. Heck, even gas prices have reversed where I am.
Europe is having to restructure it's economy to deal with reduced energy and materials inputs from aggressor nations.
We still face a massive shortage of workers, particularly in logistics.
I suspect we will see inflation remain steady or even increase later this year, barring a recession.
It’s a weirdly predictable phenomenon around American inflation discussions. Has it always been this way? Is it renewed interest in gold bugging or people sour about crypto losses?
Just like QE is good as a short term solution to economic problems releasing strategic oil reserves to push down inflation (as it relates to oil) is a short-term fix that will likely exacerbated the problem in the medium to long term.
[1] https://www.reuters.com/business/energy/us-strategic-oil-sal...
So it's more of a signal that the US is about to start swinging a bigger stick to get oil production up, than it is an illusion.