‘Encouraging news' - Analyst on US CPI data as inflation cools

Record ID: 1983257

  • Title: ‘Encouraging news' - Analyst on US CPI data as inflation cools
  • Date: 12th March 2025
  • Summary: ALLENTOWN, PENNSYLVANIA., UNITED STATES (MARCH 12, 2025) (REUTERS) (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: “Not surprisingly, investors are worried because they are responding to the direction of the market. Yet I think you have to look longer term at inflationary expectations, GDP growth prospects and corporate profit estimat
  • Embargoed:
  • Keywords: CPI Sam Stovall US economy Wall Street comsumer price index inflation stock markets trade war
  • Location: VARIOUS
  • City: VARIOUS
  • Country: US
  • Topics: Economic Events,North America,Equities Markets
  • Reuters ID: LVA00F825712032025RP1
  • Aspect Ratio: 16:9
  • Story Text: U.S. consumer prices increased less than expected in February. The index rose 0.2% last month after accelerating 0.5% in January, the Labor Department's Bureau of Labor Statistics said on Wednesday (March 12).
    In the 12 months through February, the CPI increased 2.8% after climbing 3.0% in January. Economists polled by Reuters had forecast the CPI gaining 0.3% and advancing 2.9% year-on-year.
    “This is encouraging news that we got today,” said Sam Stovall, chief investment strategist at CFRA Research. “And tomorrow's PPI (Producer Price Index) report should probably go along with that to indicate that maybe we are on a renewed downward track for inflation.”
    But the relief offered by the tame Consumer Price Index report from the Labor Department could be temporary as the data did not capture a cascade of tariffs by President Donald Trump's administration, which has caused a surge in consumers' inflation expectations and prompted economists to upgrade their inflation forecasts.
    The stock market has suffered heavy losses in recent days as trade tensions threatened the U.S. economic expansion. But Sam Stovall is “cautiously optimistic.”
    “I am a bull, but with a lowercase ‘b’,” said Stovall. “I do believe that once we get out of this weak patch, the market will probably work its way higher by year end.”
    (Production: Kyoko Gasha)
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