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US inflation remains persistent. Analysts at Commerzbank suggest that the Federal Reserve may opt to delay rate cuts further as a result.
US inflation pressure rises again
The deceleration of inflation in the US appears to be halting. February witnessed a robust 0.4% increase in consumer prices from the previous month, both including and excluding energy and food. Notably, prices for services saw a notable rise, attributed to escalating wage expenses. This suggests that the elevated inflation rate observed in January was not an isolated incident.
Such data reinforces our belief that the market is overestimating the likelihood of interest rate cuts by the Federal Reserve.
