Macro data day in the US. In February, US inflation rose to 2% on an annual basis, from 1,6% in January: this is the largest leap forward in the last 4 years. The increase came on the heels of +9,1% in fuel prices (which accounted for almost three-quarters of the total increase). Analysts were expecting an increase of 0,6%.
The "core" data, i.e. the one excluding the food and energy prices component, grew by 0,2%, in line with what was expected by the experts. On an annual basis, the overall figure and the "core" component both increased by 2%, in line with the level considered the annual target by the Federal Reserve.
Energy prices rose 5,4% after three-month declines after gasoline hit a four-month high at $3,784 a gallon, up 15% year-to-date. The prices of foodstuffs (+0,1%) and medical services also rose, which canceled out the reductions in vehicles, clothing and airfares.
As for industrial production, again in February it grew at a faster pace than expected thanks to the good performance of the manufacturing sector. According to the Federal Reserve, industrial production increased by 0,7%, while analysts expected a rise of 0,4%.
Plant capacity utilization rose 0,4% to 79,6%, the highest since March 2008, while experts had expected a figure of 79,4%.
