US CPI Heats up to a Blistering 7.9%, Core at 6.4% In the Lead up to FOMC
- US CPI (YoY) Feb = 7.9%
- US Core CPI (YoY) Feb = 6.4%
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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in February on a seasonally adjusted basis after rising 0.6 percent in January according to the U.S. Bureau of Labor Statistics reported today.
Additionally, core inflation ( CPI without fuel and food costs which can often be volatile) has also increased to 6.4%.
US Core CPI Data
Over the last 12 months, the all items index increased 7.9 percent before seasonal adjustment and was in line with expectations ahead of the release.
While inflation heats up, market participants turn their attention to the March inflation print which could see a massive rise in the CPI figure as a result of fuel reaching $139 per barrel.
The dollar reaction is understandably somewhat muted. Price action dipped ahead of the print, in reaction to a more hawkish stance of the ECB regarding tapering and now appears to be closing the gap. However, USD moves are likely to eb determined by the Ukraine crisis and then by monetary policy developments next week.
US Dollar Index 1 Minute Chart
Source: IG, prepared by Richard Snow
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--- Written by Richard Snow for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.