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Data: Investing.com; Chart: Axios Visuals

The consumer price index rose 0.6% last month for the second straight time, with gasoline accounting for a quarter of the gain. Core CPI, which strips out food and energy prices, jumped by 0.6%, marking the biggest gain since January 1991.

Why it matters: The back-to-back CPI increases combined with Tuesday's bounce back producer price index reading, suggest inflation is far from dead.

  • Inflation worries also were stoked by Friday's jobs report, which showed stronger-than-expected gains last month.

Where it stands: Benchmark U.S. 10-year Treasury yields settled at 0.67% Wednesday, the highest since July 6, as the market has seen a notable reversal.

  • Last week 10-year yields stalled near record lows below 0.6%.
  • Yields have now risen in four consecutive sessions.

What they're saying: "Inflation initially collapsed in [the second quarter] as the pandemic hit, but it has recovered quickly in recent months as central banks engaged in unprecedented easing," Bank of America commodity and derivatives strategist Francisco Blanch said in a note to clients.

  • "In turn, the aggressive expansion of monetary and fiscal policy in the US has led to fears of US currency debasement and overshooting inflation."

What it means: Blanch recommends commodities, currencies like the Mexican peso and Brazilian real and Treasury Inflation-Protected Securities, which "are closely correlated to inflation."

Go deeper

Dion Rabouin, author of Markets
Oct 1, 2020 - Economy & Business

Midwest manufacturing survey soars

Data: Investing.com; Chart: Axios Visuals

Unexpectedly strong U.S. data may have helped pull the stock market out of its funk over the past few days.

Driving the news: Following Tuesday’s stronger-than-expected consumer confidence report from the Conference Board, ADP reported the biggest increase in private-sector job growth in three months Wednesday and a measure of business conditions in the Midwest rose to the highest level since the end of 2018.

Wisconsin recount reaffirms Biden's victory in the state

Photo by Mark Makela/Getty Images

The two recounts in Wisconsin requested by the Trump campaign were completed Sunday and confirmed that President-elect Joe Biden won the state, the Washington Post reports.

Driving the news: Biden won Wisconsin by more than 20,000 votes. Recounts in the state's most populous and liberal areas — Dane and Milwaukee counties — netted him an additional 87 votes.

15 mins ago - Politics & Policy

Congressional Hispanics want Lujan Grisham at HHS

Michelle Lujan Grisham arriving on Capitol Hill. Photo: Tom Williams/CQ Roll Call

Hispanic lawmakers are openly lobbying to have New Mexico Governor Michelle Lujan Grisham be named Health and Human Services secretary, according to a letter obtained by Axios.

Why it matters: These members are now following the example some Black lawmakers have used for weeks: trying to convince Joe Biden his political interests will be served by rewarding certain demographic groups with Cabinet picks.