US inflation rate hit 3.2% in February. This is following 3.1% in January.
Expectations were for inflation to continue slowing or stay the same. Inflation has slowed a lot since 2022 with previous plans indicating rate cuts in March. However following this increase in CPI, these rate cuts have been revised. The Fed has decided to stay cautious.
Petrol prices rose by 3.8%, energy fell by 1.9%. Housing costs saw a rise. 5.7% YoY in February Housing costs account to a third of US CPI calculations Excluding housing costs, February CPI was 1.8% YoY.
US PCE stats will be announced after the March 20th rate vote. 2 weeks ago, PCE for January was announced showing 2.4% which was the lowest reading since March 2021 The announcement of the CPI data saw gold prices weaken. The US primaries in 2024 is a main focus point politically for many Americans. Despite its importance, low voter turnout seems to be a concern. Moreover, voting patterns by race seems to have shifted radically as millions of voters, especially minorities, seem to have completely shifted their political stance, moving from one side of the political spectrum to the other