Despite it falling in recent months, we're still not out of the woods regarding inflation. The Consumer Price Index (CPI), a measure of the cost of consumer goods, saw its annual change peak in June of last year at 9.1%. The most recent reading from December shows inflation up 6.5% year over year, which is still well above the Federal Reserve's 2% inflation target.

Investors are optimistic that inflation will continue falling in the coming months. This would be a positive development for the economy and stock market, because it means the Federal Reserve won't have to keep raising its interest rates as aggressively to bring it down. However, not all investors think inflation will go away so quickly.

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Source Fool.com