Breaking: US annual CPI inflation rises to 8.5% in March versus 8.4% expected
- Headline CPI came in at 8.5% YoY, a tad above expected, though Core CPI figures were softer than forecast.
- As a result, the US Dollar weakened in an initial reaction, with the DXY slipped back to test 100.
The annual rate of US inflation, as per the Consumer Price Index (CPI), came in at 8.5% in March, slightly the median economist forecast for a reading of 8.4% and higher versus February's YoY rate of 7.9%. The MoM rate of inflation according to the CPI came in at 1.2% MoM, in line with the median economist forecast for a reading of 1.2% and above versus February's 0.8% MoM reading.
Also read: Dow Jones futures bounce on in line US CPI data
Core Consumer Price Inflation came in at 6.5% YoY and 0.3% MoM, both below expectations for 6.6% and 0.5% respectively. Indeed, the MoM rate of Core CPI was lower versus February's 0.5% reading, while the YoY rate in March was only up slightly versus February's 6.4% reading.
Market Reaction
The initial reaction in the DXY was to plunge back towards the 100 level, likely due to the softer than expected Core CPI figures. The DXY is now back to trading flat on the day.
Author
FXStreet Team
FXStreet
