In March, the U.S. saw a slight dip in the Consumer Price Index (CPI), which decreased by 0.1% compared to economists’ expectations for a 0.1% increase after a prior 0.2% gain in February. Year-over-year, the CPI only climbed 2.4%, dipping below the anticipated 2.6% based on past trends.
Key Highlights:
- U.S. CPI fell short of expectations in March.
- Bitcoin’s value saw a modest rise following the CPI report, now surpassing $82,000.
- The Federal Reserve is scheduled for its next meeting in May, during which the market will be evaluating the potential for rate cuts based on these figures.
The core CPI, excluding the volatile food and energy sectors, ticked up 0.1% in March, well below forecasts expecting a 0.3% increase. It also rose 2.8% year-over-year, again missing expectations that forecasted a rise to 3%.
Following the CPI report, U.S. stock index futures have experienced some pressure; the Nasdaq 100 is down by 2.7% while the S&P 500 has gained 2.1%.
Notably, Thursday’s data reflects market conditions before President Trump’s recent tariff announcements, which occurred last week and caused significant market fluctuations. This analysis leads traders to speculate about the likelihood of a rate cut at the forthcoming Fed meeting, with predictions now leaning towards a 75% chance of a 25 basis points cut or more by the end of June.
Looking ahead, the release of Friday’s Producer Price Index (PPI) may also influence future Fed policy expectations.
