#CryptoCPIWatch US CPI Report: Is Inflation Cooling or Persisting Pressure? What Does It Mean for Markets and Cryptocurrency

Key Points to Remember:

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

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

The outlook for interest rate cuts by the U.S. Federal Reserve may change based on CPI data.

Cryptocurrency, stock markets, and fluctuations of the U.S. dollar depend on inflation trends.

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

The U.S. Bureau of Labor Statistics (BLS) will release the February Consumer Price Index (CPI) report on Wednesday at 12:30 GMT, providing important insights into inflation trends. Market analysts predict a slight decrease in inflation, which may affect the Federal Reserve's policy, the U.S. dollar, and risk assets such as cryptocurrency.

The headline CPI inflation rate is expected to reach 2.9% year-on-year (YoY), down from 3.0% in January, marking the first time both core and headline inflation have decreased since July 2024. The core CPI inflation rate, excluding food and energy, is expected to drop from 3.3% to 3.2%.

Monthly Inflation Forecast:

Headline CPI: +0.3% MoM

Core CPI: +0.3% MoM

Analysts at TD Securities expect broad-based inflation to slow, noting that housing costs and commodity prices may decline, contributing to the easing trend.