BlockBeats report: On March 11, U.S. core inflation in February slowed compared to the previous month, indicating that price pressures had already eased before the outbreak of the Iran war. Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that core CPI, excluding food and energy, rose 0.2% month-over-month and 2.5% year-over-year, remaining flat from the prior month—the slowest pace in nearly five years. Overall CPI increased 0.3% month-over-month and 2.4% year-over-year. After enduring persistent inflation for much of last year, inflation has generally shown a downward trend in recent months.
However, the war in Iran has reignited inflation concerns, as the conflict has driven up costs for oil, gasoline, and fertilizers, potentially increasing the cost-of-living pressure on American households before the mid-term elections. Federal Reserve officials are expected to hold interest rates steady at next week’s meeting. As the war may push inflation higher in the short term, some investors now believe the Fed may keep rates unchanged for a longer period. Nevertheless, officials must also remain attentive to the lingering vulnerabilities in the labor market. (Jinshi)