US inflation slows down to 5% in March, the lowest since 2021: stock exchanges are racing – Corriere.it

Consumer prices in the United States rose less than expected in March, recording an annual figure below forecasts and the lowest since May 2021. Thus easing the pressure on the Fed in terms of rates. Prices grew by 0.1% last month compared to February, according to the Labor Department. The core data, i.e. the one excluding the food and energy prices component, grew by 0.4%, in line with expectations, after the +0.5% of the previous month. On an annual basis, the general data recorded +5%, after +6% in February, against expectations for +5.1%; in June, it reached 9.1%. The core figure grew by 5.6%, after +5.5% in February, in line with expectations. Energy prices fell in March by 3.5% compared to February and by 6.4% compared to a year earlier, while food prices increased by 8.5% in a year, but decreased by 0, 3% from the previous month, the first drop since September 2020.

The effects on stock exchanges

What does this mean? The stock exchanges certainly welcomed the news: the European ones put the turbo on, expanding gains after the release of the data on US inflation, which fell to its lowest level since May 2021 in March, thus easing the pressure on the Fed. he Ftse Mib index touched an increase of 1.3%, in Paris the Cac40 of 1%, in Frankfurt the Dax of 1.1%. On the bond market, the spread between BTPs and Bunds dropped to 182 points, with the yield on the Italian ten-year bond down to 4.08%. On the monetary front, the euro strengthened further against the dollar to 1.0985. And on Wall Street? Has the desire to bet on future increases returned? Pending the opening of the lists, futures on the Dow Jones rise by 0.62%, those on the S&P 500 by 0.77%, those on the Nasdaq by 0.97%. And WTI oil on the Nymex gains 0.90% to 82.26 dollars a barrel.