The Labor Statistical Bureau reported on Wednesday that the prices of goods and services would rise lower than expected in February and that consumers and businesses would be a little relieved because they were worried about inflation.
The Consumer price code. All item CBI increased by 0.5% in January.
Apart from food and energy prices, the Core CBI rose 0.2% in the month and was 3.1% on a 12 -month basis. The main CBI rose 0.4% in January.
The economists surveyed by Dow Jones were looking for a 0.3% increase in both the title and Core, and the respective year’s rates were 2.9% and 3.2%, which means that all rates were 0.1% lower than expected.
After the release, the stock market was added to the future gains, while the treasury yields rose. The markets are very turbulent as the dow Jones industrial average fell by 6% in the past month.
“A lot of this inflation data is going to come and you have not already linked what happened to fees,” said Charles Swabin Senor investment strategist Kevin Garden. “The variations and uncertainty associated with the policy are more stronger in the market based on anything related to the CBI or a data point.”
The PLS said the shelter costs rose 0.3%and were less than January, but the CBI is still responsible for the monthly increase of the month of the month. This type is more than one -third of the total weight of the CPI, especially the focus on a measurement in estimating that homeowners can rent for their property, which increased by 0.3%.
Both food and energy codes have increased by 0.2%. The vehicle prices used were up 0.9% and the clothes rose 0.6%. In the meal, egg prices rose by 10.4%, and a 12 -month increase rose to 58.8%, and a wide range of meat, poultry and fish. Beef prices rose 2.4% in February.
Motor Vehicle Insurance recorded an increase of 0.3% per month and rose 11.1% annually. However, the flight fell fell by 4% in February, with a decline of 0.7% a year ago.
Inflation Average hourly income The PLS said in a separate release, increased by 0.1% per month and an increase of 1.2% over a year ago.
This report comes on an important occasion for the US economy and financial markets, which is about the increase in the fear of the fear of the growth of President Donald Trump and the growth of growth.
In the recent improvements, 25% of Trump’s duties in steel and aluminum came into effect on Wednesday, which prompted the EU retaliation. Trump slapped 20% of the goods from China.
Federal Reserve officials are watching the progress. Central bank policymakers generally think that fees have moderate impacts on inflation, and are considered a measure that does not have a prolonged impact on long -term measurements.
However, a vast trade war may change, and the speed of the increase is high in the economy. Markets are currently expecting the central bank will restart interest rates with a total of 0.75 per cent points by the end of 2025.
“The CBI release of February showed further signs of the advancement of basic inflation, with an increase in prices after a strong release of January,” said Gay Hai, the global co -head of the Goldman Sachs property management. “At this month’s meeting, when the central bank is still suspended, the combination of inflation pressure and harmful risks to growth says that the central bank says it is approaching to continue its relaxed cycle.”
It is widely expected that the Central Bank meets next week and holds its main credit rate up to 4.25%-4.5%of the target range.
Economic growth was negative in the first quarter, according to the surveillance of incoming data on Atlanta Feds’ GDP. This action has changed the growth of Q1 to 2.4%, which will be the first negative growth quarter in three years.
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