Lates News

Core inflation in the United States slowed compared to the previous month in February, indicating that price pressures had eased before the outbreak of war in Iran. Data released by the US Bureau of Labor Statistics on Wednesday showed that the core Consumer Price Index (CPI), excluding food and energy, rose by 0.2% from January, with a year-on-year increase of 2.5%, remaining at the slowest pace in nearly five years. The overall CPI rose by 0.3% compared to January, with a year-on-year increase of 2.4%. After experiencing stubborn inflation for most of last year, inflation in recent months has shown an overall downward trend. However, concerns about inflation have been reignited by the Iran war, as the conflict has pushed up the costs of oil, gasoline, and fertilizer, potentially exacerbating cost pressures on American households before the midterm elections this year. Federal Reserve officials are expected to maintain interest rates at their current levels at their meeting next week. With the possibility of war temporarily boosting inflation, some investors now believe that the Fed may maintain interest rates unchanged for a longer period. However, officials also need to pay attention to the existing weakness in the labor market.