the spdr sp 500 spy is volatile tuesday morning after the labor department reported a 6 yearoveryear increase in the consumer price index cpi for february what to know the headline cpi rose 6 in february down from 64 in january according to data the labor department reported on thursday the closely watched inflation reading was in line average economist estimates on a monthovermonth basis cpi was up 04 which was also in line with estimates core cpi topped expectations on a monthovermonth basis rising 05 against a 04 estimate core inflation which excludes volatile food and energy prices was up 55 last month matching economist estimates the labor department said energy prices were up 52 yearoveryear while food prices climbed 95 why it matters the print is likely another sign that the federal reserve will opt for a less aggressive rate hike at its next meeting later this month chances for a more aggressive 05 hike steadily climbed last week amid the feds semiannual monetary policy report and hawkish comments from fed chair jerome powell before a series of bank runs completely changed market expectations the biggest banking collapse since the 2008 financial crisis was spearheaded by a bank run on svb financial group sivb last week and although customers will be made whole the federal deposit insurance corporation fdic shut down the bank and placed it under receivership there is lingering uncertainty about potential contagion in the rest of the financial sector as a result of rapidly rising interest rates which has tilted projections back toward a 025 hike powell noted in his exchange with congress last week that he planned to scrutinize tuesdays cpi data and highlighted its importance we have not made any decision about the march meeting were not going to do that until we see the additional data powell said tuesdays cpi print looks to be building a stronger case for those anticipating a 025 rate hike at most at the feds next meeting on march 22 spy price action the spy was up 051 at 38733 at the time of writing according to benzinga pro