US CPI Report: Is Inflation Cooling or Are There Persistent Pressures? What Does This Mean for the Market and Cryptocurrency
Key Points:
February CPI inflation is expected to reach 2.9% YoY, down from 3.0% in January.
Core CPI is forecasted at 3.2%, slightly down from 3.3% prior.
The Federal Reserve's interest rate cut outlook may change based on CPI data.
Cryptocurrency, stock markets, and USD volatility depend on inflation trends.
US inflation data is expected to show easing, but there are still many risks.
The US Bureau of Labor Statistics (BLS) is expected to release the February Consumer Price Index (CPI) report on Wednesday at 12:30 GMT, providing important insights into inflation trends. Market analysts anticipate a slight easing in inflation, which could impact the Federal Reserve's policy, the USD, and risk assets like cryptocurrency.
The core CPI inflation rate is expected to reach 2.9% year-over-year (YoY), down from 3.0% in January, marking the first simultaneous decrease in both core and headline inflation since July 2024. The core CPI rate, excluding food and energy, is predicted to decrease to 3.2% from 3.3%.
Monthly inflation forecast:
Headline CPI: +0.3% MoM
Core CPI: +0.3% MoM
Analysts at TD Securities predict broad-based inflation slowdown, noting that housing costs and commodity prices may decline, contributing to the easing trend.
How CPI data may affect the Federal Reserve's interest rate decision
