A higher-than-expected CPI (Consumer Price Index) report can indeed shake the markets, as it signals that inflation is stronger than anticipated. This could potentially delay the Federal Reserve's easing cycle, or at least make the central bank more cautious in cutting rates or scaling back on tightening measures.

If CPI continues to show elevated inflation, the Fed may remain more focused on combating inflation rather than shifting towards an easing cycle. The Fed typically adjusts its policy based on inflation data, and a hot CPI might lead them to maintain a more hawkish stance, which could delay any interest rate cuts.

On the flip side, if inflation proves more persistent, the Fed could take a longer time to pivot toward easing, especially if the labor market remains strong or if inflation expectations become unanchored. So, markets will likely be looking closely at future CPI reports, as well as any guidance from the Fed, to get a sense of when easing might eventually come.

Ultimately, the market's reaction to CPI and future Fed actions will depend on how inflation trends and how the Fed assesses the broader economic picture.