U.S. Inflation Report Expected to Show Stubbornly High Prices in February
Published On Mar 12, 2025, 6:09 AM
Inflation is projected to remain high with a Consumer Price Index (CPI) increase of 2.9% year-over-year in February, according to economists. This increase signifies a monthly gain of 0.3%, while the core inflation rate, excluding food and fuel, is expected to rise by 0.3% month-over-month and 3.2% year-over-year. Concerns around inflation persist due to rising prices in essential goods and services, compounded by uncertainties surrounding trade policies, particularly under President Trump's administration. Consumer sentiment has also worsened, with many anticipating a decline in their financial situations over the next year.
Stock Forecasts
XLY
Negative
Rising inflation combined with slower economic growth creates a challenging environment for consumer spending. This might negatively impact retailers and consumer discretionary stocks, as higher prices can lead to reduced purchasing power. Investors should be cautious about sectors that are sensitive to consumer spending.
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