US Inflation Release Saps Fed Policy Path
US Consumer Price index marked a gradual growth of 0.2% in February. The numbers, however, turned out to be lower that in January, when they gained 0.5%. Without food and energy, the core CPI grew 0.2% in February and +0.3% in January. Energy prices index is up 0.1%. The price index for new auto dropped -0.5%. Cloth cost rose 1.5%. Prices for transportation services grew +1%.
Throughout a year until last month, consumer prices surged 2.2% and core prices increased 1.8%. Real average hourly earnings stayed at the same level but real average weekly earnings lifted a seasonally adjusted 0.3%.
After this data, fed fund futures started pricing in a 88.8% odds of a March rate hike.