U.S. February Core CPI Records Slowest Increase in Nearly Five Years

Odaily Planet Daily News: The U.S. core inflation slowed in February compared to the previous month, indicating that price pressures had eased before the outbreak of the Iran war. Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the core CPI, excluding food and energy, rose 0.2% in January, with a year-over-year increase of 2.5%, remaining flat from the previous month and marking the slowest growth in nearly five years. The overall CPI increased by 0.3% in January, up 2.4% year-over-year. After experiencing stubborn inflation for most of last year, inflation has generally been trending downward 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 increasing the cost of living for American households ahead of midterm elections this year. Federal Reserve officials expect to keep interest rates unchanged at next week’s meeting. As the war may temporarily boost inflation, some investors now believe the Fed might keep rates steady for a longer period. However, officials also need to remain cautious about the ongoing vulnerabilities in the labor market. (Jin10)