U.S. CPI Rises 0.2% in February, Below Expectations
U.S. inflation data for February indicates a more significant slowdown than anticipated:
- Consumer Price Index (CPI) rose 0.2%, below the expected 0.3% and January's 0.5%
- Year-over-year CPI increased by 2.8%, under forecasted 2.9% and January's 3.0%
- Core CPI, excluding food and energy, also increased by 0.2%, compared to an expected 0.3% and January's 0.4%
- Year-over-year core CPI was at 3.1%, against expectations of 3.2% and January's 3.3%
The price of bitcoin rose over 1% to $84,100 shortly after the report was released.
Recent market volatility has affected cryptocurrencies, with major indices like the S&P 500 down approximately 10% in the past month. Bitcoin previously dropped about 30% from its peak of $109,000.
Interest rate traders anticipate a 40% chance of a May Federal Reserve rate cut and an 85% chance of cuts by June.
The upcoming Producer Price Index (PPI) report will provide additional insights into inflation trends and potential Fed actions.