{"id":30447,"date":"2026-03-11T16:58:26","date_gmt":"2026-03-11T16:58:26","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/30447\/"},"modified":"2026-03-11T16:58:26","modified_gmt":"2026-03-11T16:58:26","slug":"februarys-us-core-consumer-price-index-month-on-month-matches-forecasts-rising-0-2-as-anticipated-overall","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/30447\/","title":{"rendered":"February\u2019s US core Consumer Price Index month-on-month matches forecasts, rising 0.2% as anticipated overall"},"content":{"rendered":"The US consumer price index excluding food and energy rose by 0.2% month on month in February. This matched the expected rate of 0.2%.\n\nWith core inflation meeting expectations, we see immediate pressure on market volatility. The CBOE Volatility Index (VIX) is likely to fall below 14, continuing its downward trend from the brief spike we saw during the growth scare in late 2025. This makes selling options premium, through strategies like iron condors or short straddles on broad market indices, an attractive proposition.\n\n<h3>Fed Policy Expectations<\/h3>\nThis steady inflation reading gives the Federal Reserve little reason to alter its current wait-and-see approach. The market is now pricing in a near-zero chance of a rate hike in the next two meetings, with CME FedWatch Tool data suggesting traders are holding odds of a first quarter-point cut by the June 2026 meeting steady at around 60%. We should therefore anticipate range-bound trading in short-term interest rate futures.\n\nFor equity markets, this Goldilocks report removes a key source of anxiety that has lingered since the aggressive rate hikes of 2022-2024. This stability supports a cautiously bullish stance, making long call spreads on the SPX or NDX appealing as a way to gain upside exposure with limited risk. The lower implied volatility also makes outright purchasing of call options cheaper than it has been in months.\n\nLooking back at the fourth quarter of 2025, we recall how a couple of surprisingly hot inflation reports caused a significant downturn in risk assets. The current in-line data provides a stark contrast and reinforces the narrative that the worst of the inflationary pressures are behind us. This helps solidify the market&#8217;s foundation, which has already supported a 4% gain in the S&#038;P 500 year-to-date.\n\nTraders should adjust interest rate positions to reflect this reduced risk of a hawkish surprise from the Fed. This means unwinding any hedges that were betting on higher rates in the short term. The yield curve, which steepened slightly after the data release, suggests the bond market is comfortable with the Fed&#8217;s current policy path toward eventual normalization.\n\n<h3>Trading Implications<\/h3>\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>US core consumer prices rose 0.2% in February, matching forecasts, indicating steady inflation momentum excluding food and energy.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-30447","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=30447"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/30447\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=30447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=30447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=30447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}