Inflation is easier to read when you separate shocks from persistence. What is happening: Some price moves are abrupt one-offs. Others feed into wages, contracts and expectations. Markets care far more about the persistent layer. Why it matters: That distinction changes how central banks react and how long investors should care about the move. In practice: An energy spike matters differently if it fades quickly than if it seeps into services and wage bargaining. Watch for: The mistake is treating every CPI surprise as the same inflation story wearing a different headline. Useful lens: A useful review question is which funding, incentive or cash-flow channel is actually doing the work. The point is not to memorize the label. The point is to know what variable is actually doing the work.