Slowing US Annual Inflation Boosts Rate Cut Prospects
The annual inflation rate in the United States slowed more than expected in February,
a sign that could prompt the Federal Reserve to accelerate interest rate cuts to support economic growth.
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Annual Inflation
According to official data released on Wednesday, the annual consumer price inflation rate slowed to 2.8% in February,
exceeding expectations of 2.9%, down from 3% in January.
Meanwhile, core inflation, which excludes volatile food and energy prices,
eased to 3.1% during the same month, compared to forecasts of 3.2%, after recording 3.3% in January.
Monthly Inflation
Notable Slowdown in Monthly Inflation
On a monthly basis, inflation fell by 0.2% in February, following increases of 0.5% in January and 0.4% in December.
Similarly, core inflation slowed to 0.2% in February, down from 0.4% in the previous month.
Key Influencing Factors
Main Factors Driving Inflation Trends
The slowdown was primarily driven by a decline in new car prices and transportation services,
while rents, healthcare, and used vehicle prices saw increases.
Food prices rose 0.2% month-over-month, compared to 0.4% in January,
while energy prices slowed to 0.2% after rising 1.1% in the previous month.
These figures could strengthen expectations that the Federal Reserve may accelerate the pace of interest rate cuts this year,
particularly as inflation continues its gradual decline.
Slowing US Annual Inflation Boosts Rate Cut Prospects