The US February Core CPI Sees Slowest Growth in Nearly Five Years

BlockBeats News, March 11th, U.S. core inflation in February slowed from the previous month, indicating some easing of price pressures before the Iran war broke out. Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the core CPI excluding food and energy rose 0.2% from January, with a year-on-year increase of 2.5%, unchanged from the previous month, marking the slowest growth rate in nearly five years. The overall CPI rose 0.3% from January, with a year-on-year increase of 2.4%. After experiencing stubborn inflation for most of last year, inflation has generally been on a downward trend in recent months.

However, the Iran war has reignited inflation concerns, as the conflict has driven up the costs of oil, gasoline, and fertilizers, potentially exacerbating cost-of-living pressures for American households before the mid-term elections this year. Federal Reserve officials are expected to keep rates unchanged at the meeting next week. With the war potentially boosting inflation in the short term, some investors now believe that the Fed may keep rates unchanged for a longer period. However, officials must also pay attention to the lingering weakness in the labor market. (FXStreet)