#CryptoCPIWatch
US CPI Report: Cooling Inflation or Persistent Pressure? What It Means for Markets and Cryptocurrencies?
AI Summary
Key Conclusions:
US CPI inflation for February is expected to be 2.9% year-on-year, down from 3.0% in January.
Core CPI is projected to be 3.2%, a slight decrease from the previous 3.3%.
The outlook for US Federal Reserve rate cuts may change based on CPI data.
Cryptocurrency markets, stocks, and fluctuations in the US dollar depend on inflation trends.
US inflation data is expected to show cooling, but risks persist.
The US Bureau of Labor Statistics (BLS) will release its Consumer Price Index (CPI) report for February on Wednesday at 12:30 GMT, providing crucial insight into inflation trends. Market analysts anticipate a slight decline in inflation, which could influence Federal Reserve policy, the US dollar, and risk assets such as cryptocurrencies.
The overall CPI inflation rate is expected to be 2.9% year-on-year, down from 3.0% in January, marking the first dual decline in both core and overall inflation since July 2024. The core CPI inflation rate, which excludes food and energy, is projected to fall to 3.2% from 3.3%.
Monthly Inflation Projections:
Overall CPI: +0.3% month-on-month
Core CPI: +0.3% month-on-month
TD Securities analysts predict a widespread deceleration of inflation, noting that housing costs and goods prices could decrease, contributing to a trend towards deceleration.
How CPI Data Could Affect Federal Reserve Rate Decisions
The Federal Reserve has shown caution regarding rate cuts, and its chairman Jerome Powell stated last week that economic conditions remain "