US Inflation Rises To 3.2%

Vignesh Karunanidhi
US Inflation Rises to 3.2%
Source: CNN

The Bureau of Labor Statistics (BLS) in the United States has released the Consumer Price Index (CPI) data for February. The data indicates a rise in inflation to 3.2%, which is higher than expectations.

This marks a change from the previous downward trend, as the current rate is higher than the 3.1% recorded in January but lower than the 3.4% in December.

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February inflation number comes higher than expectations

The inflation rate in February is higher. than the 3.1% inflation rate in January. Despite this, the Federal Reserve (Fed) still needs to make progress to reach its target rate of 2%.

For over a year, the Fed has been addressing high inflation through aggressive policy tightening, raising interest rates significantly to curb demand and stabilize prices. The Fed expects consistent declines in inflation as evidence that their approach is working.

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Since March 2022, the Fed has gradually increased interest rates through successive adjustments, resulting in the benchmark federal funds rate reaching a targeted range of 5 to 5.25 percent.

Investors will be closely monitoring stock and crypto market movements in response to the released CPI numbers. The rise in inflation coincides with a surging crypto market following the approval of a spot Bitcoin ETF in the US.