Inflation Not as Bad as Feared, According to CPI Report
The inflation numbers for the United States are coming down, with a greater decline than anticipated according to the Consumer Price Index which released today.
February headline inflation eased to 2.8% in February, showing signs of improvement after Donald Trump’s first full month as President in his second term. The worry, though, is that this round of tariffs will negatively affect stock prices and inflation both as the year progresses.
Gasoline costs were down, according to the CPI report, and rent hikes dropped to their lowest point in three years. However, used car prices climbed and grocery prices stayed flat overall. They would have been lower, but egg prices have driven up the cost of groceries around the country due to egg shortages.
Economists say that consumers should expect higher prices on household goods as well as electronics and apparel. The progress made in February may be erased quickly if import costs and tariffs negatively affect the market further and there is no reprieve incoming.
How Today’s CPI Could Affect the Market
We expect to see some positive impact from the CPI report and its reading on inflation. It likely will not be enough to offset the impact of tariffs and the recession fears that those have created, but it could be enough to slow down the stock market decline that we have been seeing for a couple of weeks.
Some economists say the president’s import fees, especially on Chinese shipments, may already be reigniting inflation for products such as household furnishings, apparel and electronics.
Inflation was up 2.8% in February, which is down from January’s 3% increase, showing signs of positive progress. The Labor Department released these figures today, and we expect them to help boost the stock market for the rest of the week. However, there is continuing fear about electric prices rising due to tariffs, which could hurt the top tech stocks and keep the Nasdaq low.
Today, Microsoft (MSFT) is enjoying a minor increase of 0.08%, and Tesla (TLSA) is up an impressive 3.79% as it continues to ricochet between highs and lows.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals