U.S CPI Data Reveals Less Than Expected Inflation Rate in March at 5%
- Inflation statistics for March showed an annual rise in the all-items index of 5.0%.
- The US Federal Reserve seeks to limit price increases to 2% from the current 5%.
Compared to February, when prices grew by 0.4%, the CPI increased by 0.1% in March 2023 after seasonal adjustments were made. Inflation statistics for March showed an annual rise in the all-items index of 5.0% before seasonal adjustment.
The Consumer Price Index (CPI) for March 2023 had recently been issued by the United States Bureau of Labor Statistics. To some extent offsetting the decrease in the energy index, the increase in the shelter index drove the total CPI up.
Interest Rate Hike Expected
The market’s average rate of price change is quantified by the index that is calculated every month. As the US Federal Reserve seeks to limit price increases to 2% from the current 5%, inflation data has taken on added significance in the context of the US economy as a whole.
The central bank also had to cope with the problem in the regional banking system, which led to the closure of certain local institutions. Traders anticipate that the US central bank would begin the ‘Fed pivot’, or rate decreases prior to a no-increase prospect, sometime in 2023.
Stock futures in the United States increased when the March 2023 inflation report came in lower than predicted. Meanwhile, the crypto market registered a 1% increase after initially showing little reaction to the inflation statistics surprise.
On Wednesday, Mary Daly, president, and chief executive officer of the Federal Reserve Bank of San Francisco said that the Federal Reserve still had “more work to do” in terms of raising interest rates despite signs of strength in the U.S. economy, such as a tightening labor market.
Read more: https://thenewscrypto.com/u-s-cpi-data-reveals-less-than-expected-inflation-rate-in-march-at-5/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
