A monthly report on US consumer prices set to be released on Tuesday is not expected to persuade Federal Reserve officials to initiate interest rate cuts, according to Bloomberg Economics. The core consumer price index, which excludes food and energy, is projected to have increased by 0.3% in February, as stated by Bloomberg economists Anna Wong and Stuart Paul. They anticipate that on a year-over-year basis, the core CPI will see a 3.7% rise, the lowest since April 2021.
As the Federal Reserve evaluates the data from the monthly report on US consumer prices, experts remain cautious about the possibility of interest rate adjustments. With the core consumer price index expected to rise by 0.3% in February, excluding food and energy costs, the Federal Reserve may not view it as sufficient to warrant a decrease in interest rates. Additionally, the anticipated 3.7% increase in core CPI on a year-over-year basis, as predicted by Bloomberg economists, is anticipated to be the smallest recorded since April 2021.
Given the projections for the upcoming report on US consumer prices, it is unlikely to sway Federal Reserve officials towards lowering interest rates. The anticipated 0.3% increase in the core consumer price index in February, along with a year-over-year rise of 3.7%, is not significant enough to prompt a change in interest rates. As inflation remains a key consideration for the Federal Reserve, any fluctuations in consumer prices will be closely monitored to determine the appropriate course of action regarding interest rates.
