Investors are awaiting the release of the Consumer Price Index report for February set to be released on Tuesday as they look for more clues on the trajectory of the Federal Reserve’s interest rate policy. This comes ahead of the central bank’s next policy decision in March.
February’s CPI is expected to show headline inflation of 3.1%, thereby matching Januarty’s figure, estimates from Bloomberg showed. On a “core” basis, which excludes volatile costs such as food and gas, inflation is expected to be 3.7%; a decline from the 3.9% core inflation experienced in January.
Compared to the previous month, consumer prices are expected to rise by 0.4%; a slight increase from the 0.3% gain in January. In a note to clients, Bank of America economists Stephen Juneau and Michael Gapen commented that the expected monthly decrease in core prices “should alleviate concerns that inflation is reaccelerating after the January data.”
