Core CPI rose by more than expected in February, increasing by 0.5% vs the median forecast of 0.4%. Headline CPI rose by 0.4% and was up 6% YoY. Rising shelter costs were the largest contributor to the increase, accounting for over 70% of the rise in the headline number. Today’s print puts the Fed in a tough spot as up until the recent bank failures, the Fed had been able to raise rates without hindering the economy. After the release the 2-year rose to a high of 4.372% but has since retraced that level a bit and is sitting around 4.22% currently.
Hafizan Hamzah
Senior Director, Investment Management Group
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