U.S. CPI Unexpectedly Rises to 3.2% Annual Pace in February
The U.S. Consumer Price Index (CPI) increased faster than anticipated last month, with the year-over-year rate at 3.2%, compared to estimates of 3.1%. The core rate, excluding food and energy costs, was 3.8%, higher than the expected 3.7%. On a monthly basis, the CPI rose 0.4% in February, matching estimates and up from January's 0.3%. Bitcoin's price increased slightly to $72,000 following the data release. Despite expectations for five or six rate cuts in 2024, strong economic growth and inflation figures above the Federal Reserve's 2% target have reduced these expectations, with the first rate cut now anticipated in the summer. Bitcoin has not been negatively affected by this change in monetary policy outlook, with a 70% rally year-to-date to a new record high above $70,000 due to high demand from spot ETFs. Traditional markets saw minor selloffs in U.S. stock index futures and bonds and a slight rally in the dollar following the disappointing numbers. Gold prices dropped by 0.3%, but remain near a record high at $2,180 per ounce.
