U.S. February Core CPI Records Slowest Increase in Nearly Five Years

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Deep Tide TechFlow News, March 11 — U.S. core inflation in February slowed compared to the previous month, indicating that price pressures had eased before the outbreak of the Iran war. Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that core CPI, excluding food and energy, rose 0.2% from January, with a year-over-year increase of 2.5%, unchanged from the previous month, marking the slowest growth in nearly five years. Overall CPI increased 0.3% from January and rose 2.4% year-over-year. After experiencing stubborn inflation for most of last year, inflation has been generally declining in recent months.

However, the Iran war has reignited inflation concerns, as the conflict has driven up costs for oil, gasoline, and fertilizers, potentially increasing the cost of living for American households ahead of midterm elections this year. Federal Reserve officials expect to keep interest rates unchanged at next week’s meeting. As the war may temporarily boost inflation, some investors now believe the Fed might keep rates steady for a longer period. However, officials also need to remain cautious about the still-weak labor market. (Jin10)

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