US consumer prices rose 6% in February

The US consumer price index (CPI) in February reduced the growth rate to 6% from January's 6.4%. The data coincided with analysts' forecasts.

However, the monthly pace does not show a noticeable decline: the indicator slowed to 0.4% from 0.5% in January. Analysts note that the monthly rate of price growth can be called quite high, especially in terms of core inflation. The inflation rate, which does not include food and energy, was fixed at 0.5%, which is higher than the forecast of 0.4%. In annual terms, the core CPI slowed growth from 5.6% to 5.5%.

As you know, in its monetary policy, the US Federal Reserve System focuses on core inflation, and this indicator is still growing at a high pace relative to the Fed's long-term goal of 2%. The recent report has «thrown up problems» to the US regulator, which is currently struggling with the bankruptcy of the three largest banks in the country and broader concerns about the further financial stability of the US banking sector. 

After the release, the stock market reacted with increased volatility. The dollar rose slightly as consumer price data showed that inflation tends to decline, which could lead to the Fed slowing down or even suspending interest rate hikes next week. According to analysts' forecasts, at the next meeting, the regulator will raise the rate by 25 bps.