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Which Asset Classes Historically React Most to CPI Surprises? Introduction When CPI surprises hit the market, investors immediately look at how different asset classes react. The Consumer Price Index (CPI) is one of the most closely watched indicators of inflation in the United States. A stronger-than-expected CPI reading can rattle stocks, strengthen the dollar, and push bond yields higher—while a weaker print often sparks rallies in risk assets. Understanding which asset classes historically react most to CPI surprises is essential for traders, long-term investors, and anyone tracking inflation trends. In this article, we’ll explore how equities, bonds, currencies, and commodities typically behave when CPI numbers come in above or below expectations. We’ll also look at a recent US case study, highlight practical takeaways, and answer common investor questions. Why CPI Surprises Matter to Markets CPI measures the change in consumer prices over time. When the releas...