The basic indicator inflation of the US Federal Bank (FED) increased more than expected in February 2025, while consumer spending also increased less than planned, the Ministry of Commerce said today USA.
The basic price index of personal consumer spending increased 0.4% for the month, with the thw dude US inflation to be 2.8%. Economists asked by Dow Jones expected 0.3% and 2.7% respectively, according to a CNBC report.
The core of inflation does not include the volatile prices of food and energy and is generally considered a better indicator of long -term inflation tendencies.
In all data, the price index increased by 0.3% per month and by 2.5% over a year ago, both according to forecasts.
At the same time, the report by the Bureau of Economic Analysis showed that consumer spending accelerated 0.4% for the month, below 0.5% forecasts. This happened as personal income increased 0.8%, compared to 0.4%.
Futational trading contracts have moved lower after the announcement, as well as the yields of government bonds.
Fed officials are focusing on reading inflation, as they consider it to be a wider measure that also adapts to changes in consumer behavior and places less emphasis on housing than the Ministry of Labor Consumer Price Index. Housing costs were one of the most persistent elements of inflation and increased by 0.3%.
‘It seems that the Fed which is based on the view “I wait and see” It must remain even longer in standby, “said Ellen Zentner, head of Economic Strategy of Morgan Stanley Wealth Management. “Today’s higher than the expected measurement of inflation was not extremely hot, but it will not accelerate the Fed’s timetable to reduce interest rates, especially given the uncertainty surrounding duties.”
The prices of goods rose by 0.2%, led by recreation and vehicles, which increased by 0.5%. Gasoline offset part of the increase, with the category decreased by 0.8%. Services raised by 0.4%.
The exhibition comes with markets being in ‘flush’ as President Donald Trump’s intentions for duties will exacerbate inflation, while data made slow but steady progress towards the Fed’s target for 2%.