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U.S. inflation rises 3.2% in February, faster than estimates

Published 03/12/2024, 08:36 AM
Updated 03/12/2024, 09:03 AM
© Reuters.

Investing.com -- Headline U.S. consumer price growth accelerated in February, while the underlying measure was faster than anticipated, in a sign of sticky inflationary pressures that could complicate the timing of potential Federal Reserve interest rate cuts this year.

The annualized reading of the closely-watched consumer price index increased by 3.2% last month, quicker than estimates that it would remain at a pace of 3.1% notched in January. The year-on-year core figure, which strips out volatile items like food and fuel, cooled to 3.8% from 3.9%, but was still slightly above projections of 3.7%.

Month-on-month, the overall consumer price index rose by 0.4% in February, in line with expectations and faster than the 0.3% uptick in January. The core gauge came in at 0.4%, matching the prior month and marginally hotter than expectations of 0.3%.

Analysts had said they would be paying particular attention to the monthly figure as a signpost for the momentum of inflation in the world's largest economy.

Fed officials have made easing inflation the major objective of a series of interest rate hikes that have brought borrowing costs up to more than two-decade highs. They have suggested that cuts may be coming later this year, but have stressed that they first need to see more evidence that price growth is sustainably easing back down to their 2% annualized target.

U.S. stock futures were trading higher following the data. Yields on the rate-sensitive 2-year Treasury bond and the benchmark 10-year note, which typically move inversely to prices, climbed.

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Latest comments

Gold
Fed should be feeling a little sheepish having teased rate cuts too soon.
so much ignorance about inflation cycles, and how market operate, and then there's the arm chair experts on the economy. this correction was expected and predicted by previous market action.
you have no idea what you're talking about...
with more volatility experienced traders make more money...the ones that complain about the Short term fundamentals are the losers...
Fed will now keep telling people they will cut rates, until one day they do. Its election year. Cant spook off voters with selloffs.
Bonds up Russell down. cost of capital is expected to increase.
Bonds are down today.
printing fresh green colour would actually cool inflation, otherwise to what is expected. All the inflation is fuelled by huge deposits loosing its value and people are afraid of it so they put them into circulation. Tightening would calm markets.
OMG INFLATION HIGHER THAN EXPECRTED! SO BULLISH!
JAN not JUN
Everyone is running for shelter. but after oracles earnings that includes the large cap tech bubble.
So fed will cut rates with this super CPI?
that a good question! lol
yes
You cant stop the american consumer from spending all the money they have made during Biden presidency.
The New York Fed quarterly Household Debt and Credit Survey shows that total consumer debt stands at 17.5 Trillion as of Q4 2023. A record high. The rich may have made money to spend. Most Americans are pay-to-pay. or worse. debt-to-debt. Are you going to blame Joe even a little bit??? I'm guessing not.
is it related to the wallstreet?
  US household wealth is also at record high.
as expected.. first rate cut in june.
2025 !
Lets go for negative rates. corpos need to get paid for you holding on to their precious money
  "rise in inflation" happens most of the time
Faster than estimate are great bullish news..... slower than estimate are good news.....no changes in estimate are fantastic news........ written by AI with the deceptive IBs approval and manipulative sock puppet support
as a puppet I approve this message.
You're a stock market is looking rather lofty
inflation rises or not, the market rises.
I see the government / wall street paid market shills are out in force today as we start to see some very big red candles this week
how to see? asked Biden?
It was expected to be higher than expected.
Lets go Brandon
thank's for constant inflation
next month without the base effect of energy hiding the the real increase the CPI will top4%...and fed will raise ! not cut rates!
the CPI will rise over 4% next months its more likely to raise 0.25 rates than any cuts
Who cares, It will be the last rise so the market can realize that and continue to go up
 nothing supports this market valuations, only coalition of speculation, wait for for a spark and bottom drops ...faster and deeper ...it will happen always when you least expect it
Inflation is not going lower. There will be no rate cuts this year.
No, they will cut for sure because of Presidential election. They will do everything to pump the market towards that condition
If you like your inflation, you can keep your inflation.
First, a miraculous intraday "recovery" yesterday as savvy "investors waited for the FED."  Today, those same savvy "investors" decided to pour into futures contracts this morning, "shrugging off" a rising inflation number.  Can't make this stuff up folks.  If you think this is a true market system, void of manipulation, you are, simply put, delusional.  Pathetic, fraudulent, CRIMINALLY MANIPULATED JOKE.
Multiple by 2x at least. These numbers are a gimmick when you look at highest weight items within the measure like government fixed Medicare and stone age rent equivalent metrics.
reduce balance sheet at 200 B per month, drain the bubble and stop extortion of middle class
5% inflation soon, unless fed turns serious
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