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February CPI in the U.S. aligns with predictions, supporting outlooks for no immediate interest rate reductions.
The bitcoin price was at $69,500 after the announcement, experiencing a decline of 1.2% over the last 24 hours.
Key Points:
- February’s CPI increased by 0.3% for the month and 2.4% year-over-year, aligning with market expectations.
- Market sentiment suggests no anticipated Fed rate reductions at the central bank’s upcoming meetings in March and April.
- Following the announcement, bitcoin was priced at $69,500, down 1.2% over the preceding 24 hours.
The U.S. inflation figures released on Wednesday corresponded with forecasts, bolstering expectations that the Federal Reserve will maintain interest rates at its March 18 meeting and likely also at the April meeting.
The Consumer Price Index (CPI) rose by 0.3% in February, according to the Bureau of Labor Statistics report. Analysts had anticipated a 0.3% increase, while January’s rise was recorded at 0.2%.
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Year-over-year, the CPI increased by 2.4%, matching the expected rate and January’s 2.4% figure.
Core CPI, which excludes food and energy prices, climbed by 0.2% in February, in line with predictions of 0.2%, compared to January’s 0.3% increase. On a year-over-year basis, core CPI rose by 2.5%, consistent with forecasts and January’s 2.5%.
Under slight pressure during the morning, bitcoin was trading at $69,500 shortly after the report, reflecting a 1.2% decrease over the last 24 hours.
U.S. stock index futures exhibited a modest decline overall, while the 10-year Treasury yield rose to 4.18%. This week, WTI crude oil was a significant market player, surging by 4.2% to $87 per barrel.
Prior to the release of the data, markets indicated a 99% likelihood that the Federal Reserve would maintain interest rates at its March meeting next week, as per the CME FedWatch tool. For the April meeting, the probability of a rate cut stood at just 11%, compared to 21% a month earlier.
February’s inflation data, however, may be considered somewhat outdated in light of recent events, particularly the conflict in Iran and rising oil prices. The impact of these factors on the Fed’s interest rate considerations is expected to become clearer after next week’s policy meeting.
