The Bitcoin (BTC) price experienced a strong rally past $26,000 when the United States Department of Labor released the latest Consumer Price Index (CPI) data for February 2023.
CPI pink 0.4% last month on a seasonally adjusted basis, and the department noted that the index for all items denoting inflation rose 6% over the past year. The Labor Department notes that inflation posted its lowest rise in 12 months since the period ending September 2021.
CNBC reported that mainstream markets were volatile after the launch, while cryptocurrency markets reacted positively. Bitcoin saw a rise in price along with Ether (ETH), according to data from CoinMarketCap.
The CPI measures the average change over time in consumer prices for a basket of goods and services. It is calculated by the Bureau of Labor Statistics and is used as an indicator of inflation.
The CPI reflects consumer spending patterns on items such as food, housing, transportation, clothing, health care, and recreation. It is used to adjust wages, benefits, and social security payments for inflation, measure economic performance, and set monetary policy.
The US Department of Labor statement notes that the housing index was the largest contributor to the monthly increase for all items, accounting for 70% of the February 2023 CPI increase. , home furnishings and operations also contributed.
The food index rose 0.4% last month, while the food at home index rose 0.3%. The energy index decreased 0.6%, while the natural gas and fuel oil indices also declined in February.
