According to the latest released data, the U.S. February Consumer Price Index (CPI) shows a steady cooling trend, with all core indicators precisely aligning with market expectations.

The U.S. Department of Labor reported on Wednesday that the Consumer Price Index increased by 2.4% year-on-year in February. This figure is unchanged from January and meets the expectations of surveyed economists. Excluding the more volatile food and energy items, the core price rose by 2.5% year-on-year, also in line with expectations.

Following the data release, the US dollar index briefly rose by more than ten points; the euro against the dollar briefly fell by nearly 20 points; the British pound against the dollar briefly declined by about 20 points.
A 2.5% core year-on-year inflation rate means the U.S. is at its lowest inflation level since March 2021 (when the annualized growth rate was 1.6%). Since January this year, the slowdown in core inflation has been exactly what Federal Reserve policymakers have been hoping for.

Although the February inflation “report card” is not concerning, due to recent outbreaks of Iran-related conflicts, the market generally considers this data to be “history.”$ETH