In February inflation in the US fell more than expected to 2.8%

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In February, inflation in the United States decreased more than expected to 2.8 percent, strengthening the case of the federal reserve to reduce interest rates against the background of signs of growth in the world’s largest economy.

The annual consumer price index on Wednesday was below 3 percent of January, and 2.9 percent expected by economists, according to a Reuters poll.

Futures on stock expanded income on Wednesday. The S&P 500 futures increased by 1.1 percent, compared to 0.8 percent to numbers.

The dollar rose 0.2 percent to the basket of six other currencies.

Futures markets this year prices for two declines, approximately 85 percent of the chances of a third – up to a slight release.

The US Central Bank faces inflation Without causing the recession, against the backdrop of the fears that the aggressive economic agenda of President Donald Trump interferes with growth.

Enterprises and financial markets were killed by chaotic crackdown Trump tariffs The largest US trading partners, which was marked by a number of sudden escalation and turns.

The figures on Wednesday showed that the main inflation increased by 3.1 percent, which does not meet the expectations of 3.2 percent increase.

“The main inflation slows down before we imitate the risks of the tariffs that come later in the spring, so it’s positive for the Fed,” said Veronica Clark, Citi economist. “This will make them less concerned about the reduction at the end of the year.”

Last week, Fed Chairman Jay Powell spoke about the concern of the US economy after the election after the election after the exit due to the coming of the hard-working employment figures in February, the S&P 500 Index was destroyed.

Powell suggested that he expects the Central Bank to have interest rates from 4.25 to 4.5 percent at his meeting next week, saying the Fed did not “hurry” to shrink and “focused on the signal unless.

The sectors that register the highest increase in prices included medical care and used cars, while the air and new cars were among those where the costs fell.

Egg prices, significant contribution to strong reading in January, were again higher in February, increasing by another 10 percent per month for an annual increase of 58 percent.

“This is good news, probably, but I think we don’t want to overestimate,” said Ryan Soloda, Chief American Economist Oxford Economics. “Only tariffs in China came into force in February, and it can be too fast to record it in this data round.”