US inflation data has disappointed expectations in almost all February readings, showing figures higher than market estimates.
According to the US Department of Labor, the General Consumer Price Index (CPI) for February grew by 3.2% annually, above the previous and expected 3.1%. On a monthly basis, the indicator increased 0.4% from 0.3% in January, as expected.
He Interannual core CPI has moderated to 3.8% in February from the previous 3.9%, worsening the consensus forecasts of 3.7%. Monthly inflation excluding food and energy has maintained its growth at 0.4%, exceeding the estimated 0.3%.
dollar reaction
He Dollar Index (DXY) has reacted to the data with a strong rebound. It initially shot up to 103.12, its highest level in three days, but subsequently retreated to 102.80, losing all the ground gained. At the time of writing, the Dollar is moving around 102.84, flat on the day.
Higher-than-expected CPI data could influence the Fed's decision on the first interest rate cut, as persistent inflation could cause a delay in the start of rate cuts. This scenario would benefit the Dollar in the first instance.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
