CPI inflation data cools in February, easing investor fears about the health of the US economy

The Consumer Prices Index (CPI) in February showed that inflation pressure fell in February, calming some concerns about the health of the US economy within a few rocky weeks for the markets.

The latest data from the Labor Statistics Office showed that the Consumer Prices Index (CPI) increased by 2.8 % than the previous year in February, which is 3 % less than annual profit in January and before economists’ expectations with an annual increase by 2.9 %. The index increased by 0.2 % during the previous month, leaving a 0.5 % increase in January and a recovery compared to economists’ estimates from a monthly increase of 0.3 %.

On the basis of “basic”, which comes out the most volatile costs of food and gas, prices increased in February by 0.2 % during the previous month, less than a monthly profit by 0.4 %, and 3.1 % over last year – a less annual increase in the basic consumer price index since April 2021.

This also represents a 3.3 % basic increases in the previous period, and was before the estimates of the Bloomberg consensus. This was the first time since July that the main address and the main CPI have shown a slowdown in price growth.

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“The inflation report today brings some relief that affects the need for stock markets, avoids immediate concerns about recession and giving the federal reserve space to reduce policy rates in the coming months if economic data continues to deteriorate.”

“Certainly, with an unusually high policy, the retail companies began to be reputable about warning bells on spending on consumers, and stagnation related to climbing, there is a strong possibility that the Federal Reserve needs to enter relatively soon.”

Basic inflation remained stubborn due to the sticky costs of shelter and services such as insurance and medical care. But the shelter showed other signs of dilution in February, as it rose by 4.2 % on an annual basis, and it is 12 months old since December 2021.

On a monthly monthly basis, the shelter index increased by 0.3 % compared to an increase of 0.4 % in January. Likewise, each of the rental and equivalent owners (OER) increased by 0.3 % during the previous month. The equivalent lease is the virtual rent that the owner of the house will pay for the same property.

“Housing enlargement is historically” smaller “for inflation, which means that it takes longer for price trends. “The last trend in housing prices makes us optimistic about the future path of inflation.”