in the United States InflationThe Personal Consumption Expenditures Price Index, which is used to calculate , increased by 0.3% in February. This increase came after the statement by the US Bureau of Economic Analysis. The figure came in below the 0.4% increase expected by market participants.
Inflation Increased by 0.3% in February
Core PCE increased by 4.6% over the past 12 months, indicating a minor slowdown compared to its January level. Headline PCE data, which were 0.6% and 5.3% respectively in January, increased by 0.3% monthly and 5% annually in February. Monthly data show that energy prices fell by 0.4% and food prices rose 0.2%, which is a more moderate figure than expected. Prices of goods increased by 0.2%, while prices of services increased by 0.3%.
Although inflation is at lower levels in some sectors, other regions continue to be adversely affected by this situation. Especially housing prices have increased rapidly. However, according to the Federal Reserve, they are currently looking past this as officials expect a slowdown in rent increases throughout the year.
However, officials said they were determined to lower prices amid the current banking crisis in the country and that inflation could be expected by 2024. FedThey stated that they expect the 2% to remain well above the target of 2%.
Market Response
After the release of the data, stock market futures continued to rise, while interest rates on long-term Treasury bonds fell. S&P 500 futures gained 0.4%, while Dow Jones Industrial Average contracts rose 134 points to gain 0.4%. Nasdaq-100 futures rose 0.3% at the time of writing.