CPI

Feb CPI report shows annual inflation eased again but prices increased sharply on monthly basis. Core CPI gain slowed to 5.5%

Grocery prices are still climbing higher but more slowly, rising by 0.3% from January and 10.2% over the past year. Stocks have been volatile over the last couple of days in the ] [wake of the Silicon Valley Bank fallout.](https://www.usatoday.com/story/money/economy/2023/03/13/silicon-valley-bank-collapse-live-updates/11464387002/) President Joe Biden touted the progress that's been made in getting inflation down. Used car prices declined for the eighth straight month, dropping 2.8%. Despite the big monthly increase in consumer prices, economists still expect yearly inflation to resume its descent in coming months. Other prices are falling. Nationally, regular unleaded gasoline averaged $3.47 a gallon Monday, down from about $5 in June, according to AAA. On a monthly basis, though, prices advanced 0.4% following a 0.5% increase in January. Economists expect rents to fall, based on new leases, but not until later this year. That lowered the annual increase from 5.6 to 5.5%. And some of the recent pullback in goods prices reversed as prices for apparel and household furnishings both jumped 0.8%. Consumer prices increased 6% from a year earlier, down from 6.4% in January and a 40-year high of 9.1% in June, according to the Labor Department’s consumer price index.

The Consumer Price Index (CPI) data release for February, published by the US Bureau of Labor Statistics (BLS), is scheduled for March 14 at 12:30 GMT.

The Consumer Price Index (CPI) declined to 6.0% year on year from February 2023's 6.4%. The basket of goods and services included in the CPI is intended to reflect the purchases of the typical urban consumer and is adjusted periodically to take into account shifts in consumer spending. EUR/USD has lost its traction and declined to the 1.0700 area in the early American session on Tuesday. Gold price came under renewed bearish pressure and declined to the $1,900 area in the American session. The Consumer Price Index, published by the Bureau of Labor Statistics, is a gauge of the average change in prices of a set basket of goods and services bought by households. The Consumer Price Index (CPI) data release for February, published by the US Bureau of Labor Statistics (BLS), is scheduled for March 14 at 12:30 GMT. The US CPI data will hold the utmost relevance, as the Federal Reserve remains committed to bringing down inflation back to its 2.0% target. Meanwhile, the headline CPI data is seen easing to 0.4% MoM in February, compared with a 0.5% increase reported in January. Economists from Wells Fargo agree with the consensus and expect headline inflation numbers to remain high this time around: “We look for another monthly increase of 0.4% in the overall CPI in February, which would put the YoY rate at 6.0%. [Price Index](https://www.fxstreet.com/economic-calendar/united-states) (CPI), declined to 6% on a yearly basis in February from 6.4% in January. The US Dollar's immediate reaction to February inflation data is mixed. [Follow our live coverage of the market reaction to US inflation data.](https://www.fxstreet.com/macroeconomics/economic-indicator/cpi)

Investors were closely watching the Consumer Price Index (CPI) report today after the failure of two regional banks resulted in stock markets being jittery.

Today’s report indicated that the CPI index rose at a slower pace of 0.4% in February on a seasonally adjusted basis, after rising by 0.5% in January. The index for shelter made up 70% of the increase in CPI and was the largest contributor to the monthly all-items increase. In light of this reality, it is possible that the Fed will now halt its tightening cycle.” EST, March 14 following the CPI report. In the year through January, CPI grew at 6.4%. In addition, the jobs market last week indicated that

Inflation remains elevated but the temperature is coming down, according to the latest Consumer Price Index.

On the other, it needs time to investigate the effect of recent bank collapses on financial conditions and wants to minimize the risk of further financial instability,” according to Buber. “They need to be careful in balancing the risks of price and financial stability.” On the one hand, it wants to maintain credibility on inflation and avoid core inflation accelerating further. Overall food prices were up 9.5% for the 12 months ending in February, representing the lowest annual rate for the category since April. When stripping out volatile energy and food prices, core CPI grew 0.5% on a monthly basis and 5.5% year over year. It’s up 8.1% year over year. Prices for food at home (grocery purchases) were up 10.2% in February, the lowest since March 2022. [recent stress in the banking sector](https://www.cnn.com/2023/03/13/investing/silicon-valley-bank-collapse-explained/index.html). “This is going to still take a while to return to numbers that we’re all comfortable with. Economists were expecting a gain of 0.4%. Shelter prices were up 0.8% for the month and 8.1% year over year. [Federal Reserve’s campaign](https://www.cnn.com/2023/03/07/economy/powell-congressional-testimony-inflation/index.html) to bring down high prices has grown even more [complex](https://www.cnn.com/2023/03/13/investing/sheila-bair-svb-fed-rates/index.html) in recent days.

(Bloomberg) -- Underlying US consumer prices rose in February by the most in five months, forcing a tough choice for Federal Reserve officials weighing ...

Tuesday’s report is one of the last major releases the Fed will have in hand before its March 21-22 meeting. “February’s CPI report shows that inflation is not vanishing quickly, and there remains a compelling need for the Fed to continue raising rates. The Fed is also keenly attune to wage growth and how it may be fanning inflation. Shelter costs, which are the biggest services component and make up about a third of the overall CPI index, rose 0.8% last month. Outside of shelter, recreation, household furnishings and airfares also contributed to the monthly advance in the core measure. The overall CPI climbed 0.4% in February — over 70% of which was due to shelter — and 6% from a year earlier. Stripping out energy and housing, services prices were up 0.5%, the most since September, according to Bloomberg calculations. The challenge for the Fed now is how to prioritize inflation that is still far too high with growing financial stability risks in the unraveling of Silicon Valley Bank. The consumer price index, excluding food and energy, increased 0.5% last month and 5.5% from a year earlier, according to Bureau of Labor Statistics data out Tuesday. Excluding food and energy, goods prices were unchanged in February. Swaps traders maintained bets that the Fed will lift interest rates by 25 basis points at its meeting this month. One shop even says a rate cut could be in store.

Traders are pricing in a lower Fed terminal rate. - US CPI headline expected to drop to 6.0% from 6.4% in January. - US dollar consolidating recent losses.

The unemployment rate ticked down to 3.7% for the months ending in January, compared to 3.8% previously. Wage growth also slowed a tad, with average earnings ex-bonus at 6.5% y/y compared to 6.7% previously. A break below that level targets further losses to 1.3500. A hotter than expected CPI reading will really confuse traders. Economists and analysts are quickly revising their outlooks for next Tuesday’s FOMC meeting. The Canadian dollar is grinding higher on the back of broad US dollar weakness and a repricing of the US interest rate path. USDJPY rallied choppily, rising from 133.04 to 134.33 due to the rebound in the US 10-year Treasury from the 3.50% low in Asia to 3.60% in NY. Prior to last week, the CPI report was expected to help determine the size of the next Fed rate hike and provide a better idea of the Fed’s terminal fed funds rate. According to Nomura Securities, the Fed will cut rates by 25 basis points.Goldman Sachs and Barclay’s Bank are predicting the Fed will leave rates unchanged, while UBS economists think a higher than expected inflation reading today would force the Fed to hike 50 basis points. The Canadian dollar traded narrowly overnight in a cautious session ahead of today’s release of US inflation data for February. CPI is expected to fall to 6.0% y/y from 6.4% y/y in January while Core-CPI remains unchanged at 0.4% m/m. - US CPI headline expected to drop to 6.0% from 6.4% in January.

Data showed that U.S. Consumer Price Index (CPI) rose 0.4% in February versus 0.5% a month ago. On a yearly basis, it rose 6.0% last month, compared with 6.4% ...

Its stock advanced 7.3%. "(Investors) are seeing a coordinated effort with various government agencies, and with hindsight, they’re feeling as if things have contained themselves a bit." [(UAL.O)](https://www.reuters.com/companies/UAL.O) fell 5.4% after the commercial carrier unexpectedly forecast a [current quarter loss](/business/aerospace-defense/united-airlines-shares-fall-after-dour-forecast-expenses-slowing-demand-2023-03-14/). [(FRC.N)](https://www.reuters.com/companies/FRC.N) and Western Alliance Bancorp [(WAL.N)](https://www.reuters.com/companies/WAL.N) surged by 27.0% and 14.4%, respectively, in a reversal of the previous session's rout. banking system, continued to reverberate throughout the sector. [(UBER.N)](https://www.reuters.com/companies/UBER.N) and Lyft Inc [(LYFT.O)](https://www.reuters.com/companies/LYFT.O) rose 5.0% and 0.6%, respectively, after a California state court [revived a ballot measure](/world/us/california-court-rules-drivers-can-be-contractors-win-uber-lyft-wsj-2023-03-13/) allowing the companies to treat drivers as independent contractors rather than employees. [(META.O)](https://www.reuters.com/companies/META.O) [announced](/technology/facebook-parent-meta-lay-off-10000-employees-second-round-job-cuts-2023-03-14/) 10,000 job cuts in its second round of layoffs. [(.SPLRCL)](https://www.reuters.com/quote/.SPLRCL) enjoying the largest percentage advance. [(.DJI)](https://www.reuters.com/quote/.DJI) rose 336.26 points, or 1.06%, to 32,155.4, the S&P 500 [(.SPX)](https://www.reuters.com/quote/.SPX) gained 64.8 points, or 1.68%, to 3,920.56 and the Nasdaq Composite [(.IXIC)](https://www.reuters.com/quote/.IXIC) added 239.31 points, or 2.14%, to 11,428.15. [(.KRX)](https://www.reuters.com/quote/.KRX) rose 2.1%. [(.SPXBK)](https://www.reuters.com/quote/.SPXBK) reclaimed territory, rising 2.6% after Monday's plunge, its biggest one-day drop since June 2020. [(.SPXBK)](https://www.reuters.com/quote/.SPXBK) coming back from its steepest one-day sell-off since June 2020.

U.S. stock index futures rose on Tuesday after a volatile session amid fears of fallout from the collapse of Silicon Valley Bank, while investors awaited ...

U.S.-listed Chinese stocks such as Alibaba Group Holdings Ltd, JD.Com Inc and Baidu Inc were down around 2% as fears lingered about a contagion from the SVB collapse. SVB Financial’s sudden shutdown and fears of risks to other banks hammered the sector and broader markets in the past few days. A Reuters poll of economists showed that the U.S. The February consumer prices report, due at 8:30 a.m. Article content Federal Reserve’s policy decision at its March meeting.

The consumer price index showed firm inflation pressures, but that might not keep the Fed from pausing rate hikes amid bank woes. S&P 500 futures rose.

In February, the CPI proxy for core nonhousing services saw prices rise a hefty 0.6% on the month, while the 3-month annualized inflation rate accelerated to 6.7%. But that jumped to 88% after the CPI inflation data, with just 12% odds of no hike. February's CPI showed services less rent of shelter prices rising just 0.1% on the month and 6.9% from a year ago vs. Health care is a glaring one, since it accounts for nearly 16% of PCE spending, while medical services amounts to less than 7% of CPI budgets. This CPI category covers just 29% of consumer outlays, while PCE core nonhousing services covers 50% of household spending. The core CPI inflation rate peaked at a 40-year-high 6.6% in September. The S&P 500 slipped 0.15% on Monday, closing at a two-month low. The CPI inflation rate eased to 6%, down from 6.4% in February and in line with forecasts. Wall Street views the CPI gauge of services less rent of shelter as a reasonably close proxy, but it has serious shortcomings. But the CPI report's methodology focused on health insurer profits from the previous year doesn't yield a timely, useful data point. The annual core inflation rate unexpectedly held at 5.5% vs. While persistently high inflation might support the case for a rate hike next week, Fed officials may still punt as they try to shore up confidence in the banking sector.

February inflation data will be an important indicator of the Federal Reserve's rate hike plan following the stunning collapse of Silicon Valley Bank.

12.05pm: Regional banks rebound as contagion fears subside US stocks were higher in noon trading after February's Consumer Price Index (CPI) showed prices.