On an annual basis, headline CPI declined to 2.8% from 3.0%, and core CPI dropped to 3.1% from 3.3%. The data reinforced expectations of a policy shift toward monetary easing, though Fed officials remain measured in their outlook.

Despite inflation cooling, the Federal Reserve has signaled no immediate changes to policy. Fed Chair Jerome Powell noted that rate cuts are not urgent given ongoing economic uncertainties.

San Francisco Fed President Mary Daly added that while slowing business activity is a factor, it is not yet enough to justify immediate adjustments. This cautious approach has tempered expectations for aggressive rate reductions.

Key Economic Events to Watch on March 13

Traders are closely watching key US economic data scheduled for release on Thursday, March 13, which could impact market sentiment and the Federal Reserve’s policy outlook.

The Producer Price Index (PPI) and Core PPI are expected to show 0.3% monthly growth, with a slight slowdown from the previous 0.4% PPI reading.

Additionally, weekly unemployment claims are forecast at 226K, up from 221K last week, signaling potential shifts in the labor market and broader economic trends.