Price growth is cooled more than February, a welcome sign for markets depressed in continuous inflation, even if trading policies are trading in the trade of trading.
the Consumer price index rose 2.8% in February From a year before, less to predict and slowly than 3% annual January rate, the Bureau of Labor Statistics is reported Wednesday.
Inflation increased by 0.2% from January to February, from the month of January 0.4% and beating the expectations of 0.3%. Reduction led by an acute reduction in airfares, which dropped 4%, and new car prices, in a moderate 0.1%.
Housing costs see less than 12-month increase since December 2021, increase in 4.2%. Egg prices 58% from one year earlier had already begun FALL o.
The futures of stock at first pass through the report, then withdraw. And the need for government government ties is actually weakened despite the better expected CPI reading.
Analysts warn that the coolest inflation data may not lead the Federal Reserve to lower interest rates in its meeting next week. That means high borrowing costs for all from auto loans to credit cards can stay put in a while – while still a lid on any stocks available.
“Equities may not be obtained at FID Fed Post Glee Mode,” Seemah Shah, Chief Global Strategment in the proversetseded dears, says a note on Wednesday. “It is good to remember that it can be calm CPI report before the storm.”
He and other economists say that the main wild card is to expand the trade trade of President Donald Trump to the country’s primary trade partners. He threatened 25% steel tariffs and aluminum imports effect Wednesday, causing European Union to revenge tariffs of $ 28 billion items in US including boats, motorcycles and alcohol. Canada follows the suit with one’s own foes of $ 21 billion in American products.
While Trump has entered the office promise to reduce prices “immediately,” Most of the main economists say Trading policies threatened the purpose. The President Back-and-Advertise to Tariff cause a wave of uncertainty across the US economy, which continues to spend consumer plans and businesses together.
The tariffs “are likely to bring at least some price increase,” Shah warned, “with the inflation picture that the months could grow.”
The White House Leavitt spokesman Leavitt wrote X Wednesday the release of CPI shows “the economy acts in the correct direction under President Trump.”
“This report of inflation, like the job report last week, better than the media predicted and the so-called ‘experts expect,” he said. “When will they learn to stop doubting President Trump?”
Last week, fed chair carome powell SHOW that Central Bank is not hurry to change the trajectory of interest rates. “We focus on separating the signal from noise that the view will improve,” he said. “We don’t have to hurry up and well settle to wait for the more obvious.”
Mark Zandi, the President Economist of Moody Analytics, predicts that the US “does not see further progress toward [Federal Reserve’s] 2% intention of inflation in the near future. “
“The only reason why we go back to that target is when the economy is lost here and stalls. You don’t need a shrinkage,” he looks forward to the release of CPI. “Inflation gets in, but it’s for the wrong reasons – because the economy is blinded.”
Almost a third small businesses raise prices, the national federation of small businesses found A survey issued on Tuesday. That part raises 10 percent points since January, the largest one month jump since April 2021 and the third highest record. The share of operators who lower prices, in the meantime, about 10 points lower than a year ago.
“Inflation remains a major problem, the second behind the highest problem, the quality of labor,” the NFIB chief economist chief Bill Dunkelberg said to release.
Consumers’ expectations for inflation are targeted at a small, even nearly, just as their personal views on financial aggravation, a Separate the monthly survey This week has been released through the New York Federal Reserve found.
