US CPI inflation report for March was released today at 1:30 pm BST. Report was expected to show an acceleration in headline measure as well as a slowdown in core CPI. Also, monthly inflation increase were expected to moderate after two months of 0.4% readings.
Actual report turned out to be a hawkish surprise. This is another hawkish surprise in a row, after data for January and February also surprised to the upside. Annual core CPI inflation unexpectedly stayed unchanged compared to a month ago, while headline inflation accelerated more than expected.
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Create account Try a demo Download mobile app Download mobile appThe reading was hawkish all across the board and is unlikely to give Fed more confidence to cut rates. Having said that a hawkish reaction in the markets should not come as a surprise - USD gains while gold and equity indices slumped.
US, CPI inflation for March
- Headline (annual): 3.5% YoY vs 3.4% YoY expected (3.2% YoY previously)
- Headline (monthly): 0.4% MoM vs 0.3% MoM expected (0.4% MoM previously)
- Core (annual): 3.8% YoY vs 3.7% YoY expected (3.8% YoY previously)
- Core (monthly): 0.4% MoM vs 0.3% MoM expected (0.4% MoM previously)
USD jumped following another hawkish surprise in US CPI data. EURUSD slumped below 1.08 mark following the release. Source: xStation5
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