Ultima Markets

In February 2024, the Consumer Price Index in the United States went up by 0.4% on a month-to-month basis, forming a five-month peak. A raise showcased a subtle acceleration from January’s 0.3% and matched initial predictions. Over 60% of the increase was laid at the door of shelter costs that rose by 0.4% and gasoline prices that inflated by 3.8%. Food prices, on the other hand, stayed consistent. By taking food and energy out of the equation, core consumer prices swelled up by 0.4%, identical to January’s statistics but went beyond the forecast of 0.3%. The surge was influenced by an incline in the costs associated with airline fares (3.6%), motor vehicle insurance (0.9%), clothing (0.6%), and recreation.  

(U.S. CPI MoM，Bureau of Labor Statistics) 

Surprisingly, February 2024 saw the annual inflation rate of the United States rise to 3.2%, slightly overstepping January’s 3.1% and forecast estimates of 3.1%. In addition, the annual core consumer price inflation rate dropped to a nearly three-year low at 3.8%. This decrease is only slightly down from January’s 3.9%, yet it still surpasses the market predictions of 3.7%. The index for shelter, which accounts for approximately 67% of the annual rise, experienced a growth of 5.7% in February, albeit at a slower pace compared to the 6% increase witnessed in the preceding month. 

(U.S. Core CPI YoY，Bureau of Labor Statistics) 

On Tuesday, following the CPI report, the dollar index rebounded, climbing over 103.4 after previously plummeting to a low of 102.78. Recouping early setbacks, the yield on the 10-year U.S. Treasury note ascended to regain the 4.15% mark. 

(Dollar Index Weekly Chart) 

Disclaimer  

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided. 

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