TechFlow News, March 11: U.S. core inflation for February slowed from the previous month, suggesting price pressures had already eased before the outbreak of the Iran war. Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the core CPI—excluding food and energy—rose 0.2% month-on-month and 2.5% year-on-year, unchanged from the prior month and the slowest annual pace in nearly five years. The headline CPI rose 0.3% month-on-month and 2.4% year-on-year. After persistently high inflation for most of last year, overall inflation has generally trended downward over recent months.
However, the Iran war has reignited inflation concerns. The conflict has driven up costs for oil, gasoline, and fertilizer, potentially intensifying the cost-of-living burden on American households ahead of this year’s midterm elections. Federal Reserve officials are expected to hold interest rates steady at next week’s meeting. As the war could push inflation higher in the near term, some investors now believe the Fed may keep rates unchanged for longer. Officials must also remain attentive to ongoing vulnerabilities in the labor market. (Jinshi)
