(Reuters) – U.S. bond fund outflows were large in the week ending Dec. 15. This was due to a spike in inflation, which raised investor expectations that Federal Reserve would act more aggressively in removing its stimulus funds to combat soaring prices.

Refinitiv Lipper data shows that U.S. bonds funds saw net sales of $7.48 Billion, the largest outflow since April 8, 2020.

Graphic: Fund flows – US equities, bonds and money market funds https://fingfx.thomsonreuters.com/gfx/mkt/znvnexgmapl/Fund%20flows%20into%20US%20equities%20bonds%20and%20money%20market%20funds.jpg

Data showed that consumer prices in America rose to 6.8% over the past 12 months, nearly four decades, ahead of this week’s Federal Reserve policy meeting. However, the increase in producer prices was higher than forecasts.

This week’s Fed policy meeting saw the Fed increase tapering of its monthly bond buying program by two-thirds and signal three rate rises for next year.

U.S. tax bond funds were sold by investors for $5.34 trillion, the largest weekly outflow since April 1, 2020. Municipal bond funds, however, saw a net sale of $1 billion. They had attracted inflows for 7 consecutive weeks.

U.S. investment-grade short/intermediate funds reported outflows in excess of $4.46 trillion, marking the fourth consecutive week with net sales. Net buying was dominated by loan participation funds and inflation protected funds, which drew in an additional $821 and $793 millions, respectively.

Graphic: Flows – US bond funds https://fingfx.thomsonreuters.com/gfx/mkt/zgvomndlqvd/Flows%20into%20US%20bond%20funds.jpg

The net sales of U.S. equity funds reached $22.28 Billion for the second week in succession.

U.S. growth fund net sales reached $13.46 Billion, which is the highest since January 2020. While value funds reported outflws in excess of $5.26 Billion.

Graphic: Fund flows – US growth and value funds https://fingfx.thomsonreuters.com/gfx/mkt/jnpweaormpw/Fund%20flows%20into%20US%20growth%20and%20value%20funds.jpg

After experiencing an outflow the week before, technology funds pulled $1.2 billion in net purchase purchases. However, real estate funds and utilities funds experienced outflows each of $0.5 billion.

Graphic: Flows – US equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/gdpzymgaovw/Flows%20into%20US%20equity%20sector%20funds.jpg

U.S. money-market funds witnessed outflows in the range of $1.53 Billion, after they had been luring capital for five consecutive week.