December CPI report dropping in 20 minutes—here's what traders are watching.

The consensus call: year-over-year inflation holding around 2.7%, with monthly growth tracking ~0.3%. Core CPI (stripping out food and energy volatility) sitting similarly at ~2.7% y/y.

Why it matters for markets? The data swings both ways. A print significantly lower than expected could spark a meaningful rally—risk-off sentiment easing, rate-cut hopes rekindled. Flip side: if inflation comes in hotter than anticipated, expect selling pressure as it reinforces a higher-for-longer rate environment.

Tight ranges, big implications. Market reaction typically sharp and immediate off the print.