BREAKING: US inflation for March came in at 3.3%, slightly below the 3.4% forecast.
Across the board, inflation data surprised to the downside. Core CPI landed at 2.6% vs. 2.7% expected, while monthly CPI printed at 0.9% compared to the 1.0% forecast. All key figures came in lower than anticipated.
Despite this, inflation still saw a sharp jump from 2.4% in February to 3.3% in March, largely driven by the Iran-related oil shock marking one of the biggest monthly increases in years.
However, the softer-than-expected data gives the Fed some breathing room that wasn’t there before, keeping rate cut hopes alive for now.
If oil prices continue to ease following a ceasefire, April’s CPI could improve significantly potentially setting the stage for a more serious discussion around rate cuts.
Across the board, inflation data surprised to the downside. Core CPI landed at 2.6% vs. 2.7% expected, while monthly CPI printed at 0.9% compared to the 1.0% forecast. All key figures came in lower than anticipated.
Despite this, inflation still saw a sharp jump from 2.4% in February to 3.3% in March, largely driven by the Iran-related oil shock marking one of the biggest monthly increases in years.
However, the softer-than-expected data gives the Fed some breathing room that wasn’t there before, keeping rate cut hopes alive for now.
If oil prices continue to ease following a ceasefire, April’s CPI could improve significantly potentially setting the stage for a more serious discussion around rate cuts.