#CryptoCPIWatch Key points:

February CPI inflation is expected to be 2.9% year-on-year, down from 3.0% in January.

Core CPI is projected at 3.2%, slightly down from the previous 3.3%.

The prospect of interest rate cuts from the U.S. Federal Reserve may change based on CPI data.

The cryptocurrency, stock, and U.S. dollar fluctuations markets depend on inflation trends.

U.S. inflation data is expected to show a cooling, but risks remain.

The U.S. Bureau of Labor Statistics (BLS) is set to release its Consumer Price Index (CPI) report for February on Wednesday at 12:30 GMT, providing critical insights into inflation trends. Market analysts anticipate a slight decline in inflation, which may influence the Federal Reserve's policy, the U.S. dollar, and risk assets like cryptocurrencies.

The core CPI inflation rate is expected to be 2.9% year-on-year (YoY), 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 broad-based slowdown in inflation, noting that housing costs and goods prices may decrease.