Consumer Price Index (CPI) — Year-over-Year vs 2-Year Treasury Yield
Consumer Price Index (CPI) — Year-over-Year is currently 2.8% (down -0.1%). 2-Year Treasury Yield is currently 3.7% (down -0.3%).
| Metric | Consumer Price Index (CPI) — Year-over-Year | 2-Year Treasury Yield |
|---|---|---|
| Current value | 2.8% | 3.7% |
| Previous reading | 2.9% | 3.99% |
| Change | -0.1% | -0.3% |
| Trend | down | down |
| Frequency | Monthly | Daily |
| Source | Bureau of Labor Statistics | U.S. Treasury |
| Last updated | 2026-03-12 | 2026-04-04 |
| Category | inflation | rates |
What Consumer Price Index (CPI) — Year-over-Year measures
The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a basket of goods and services. The year-over-year change is the most commonly cited measure of inflation.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed's comfort zone, but the pricing environment is stabilizing. Companies with strong pricing power can pass through cost increases; those in competitive markets face margin pressure. The Fed is unlikely to cut rates aggressively until CPI moves closer to 2%.
What 2-Year Treasury Yield measures
The 2-year Treasury yield reflects market expectations for short-term interest rates over the next two years. It is the most sensitive government bond to Federal Reserve policy changes.
The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs, short-term borrowing costs may decline sooner than long-term rates, favoring shorter-duration financing strategies.
Frequently asked
Consumer Price Index (CPI) — Year-over-Year is currently 2.8%, down -0.1% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
2-Year Treasury Yield is currently 3.7%, down -0.3% from the previous reading. Source: U.S. Treasury, updated daily.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed' The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs