US CPI data for February – Know the time and release date in March
Sticky inflation is still a threat to the US Fed and more rate hikes are expected in future.
The schedule of releases for the Consumer Price Index (CPI) shows the next set of inflation data gets announced in mid-March. The Bureau of Labor Statistics will release the US CPI data for February on March 14, 2023, at 8.30 A.M. Eastern Time.
Market watchers, analysts, investors, and traders constantly monitor the US CPI data and the FOMC meetings to make investment-related decisions for their portfolios. Sticky inflation is still a threat to the US Fed and more rate hikes are expected in future.
According to Mohamed El-Erian, financial markets are beginning to doubt the Federal Reserve’s ability to reduce inflation to its 2% target. El-Erian, the chairman of Gramercy Funds and a Bloomberg Opinion columnist, told Bloomberg Television that inflation indicators are heading in the wrong direction, raising investor concerns about how long it will take for tighter monetary policy to bring consumer-price increases under control.
In January 2023, the US annual inflation rate dropped marginally to 6.4% (monthly inflation increased by 0.5%), as against 6.5% seen in December. The reading is still the lowest since October of 2021, despite the fact that food expenses increased by 10.1% and energy prices by 8.7%.
Another alarming indicator is the jump in the Personal Consumption Expenditures (PCE) index, a preferred indicator used by the Federal Reserve. When compared to the previous month, the core PCE rose by 0.6% in January, bringing the year-over-year PCE to 5.382%.
The latest PCE data confirms that inflationary components remain sticky. This is despite the fact that the Federal Reserve has raised rates at the last eight consecutive FOMC meetings. From near zero rates in March 2022, the Fed has brought the funds rate to 4.5% – 4.75% range by February 2023.
“Had the Fed not mischaracterized inflation as transitory, had the Fed not waited till March of last year for the first rate hike, had the Fed not downshifted so quickly to 25 bps, the pain would be less. Unfortunately, if they were gonna get to 2%, they’re gonna inflict tremendous pain on this economy, said El-Erian.
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