On Wednesday, the US Bureau of Labor Statistics released the Consumer Price Index (CPI) report, which noted that inflation rose 0.1% last month in March and 5% from a year earlier. . Annual inflation has fallen for nine straight months after the US Federal Reserve raised the federal funds rate nine times.
US inflation cools for the ninth straight month
Investors were happy to hear the latest US Consumer Price Index (CPI) report on Monday, which noted that inflation has cooled in the past nine months. “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in March on a seasonally adjusted basis, after rising 0.4% in February,” the US Department of Labor reported. USA explained On Wednesday. The news follows the US central bank raising the benchmark interest rate by 25 basis points last month.
The Federal Reserve has raised the fed funds rate nine times in a row, to a total of 475-500 basis points. The latest data indicates that inflation has come down significantly since last year in the US, but is still far from reaching the Fed’s 2% target. After the CPI report was released, the total market capitalization of the global crypto economy jumped to $1.23 trillion. It had dropped a few percentage points on the night of April 11, 2023 at 10:45 PM ET.
At the moment, Bitcoin (BTC) It is trading above the $30,000 range, up 0.80% after the Labor Department’s CPI report was released. Gold is up 0.81% and is trading at $2,021 a troy ounce, while silver is up 1.82% at $25.60 an ounce as of Wednesday morning at 9:30 am ET. from the east. CME federal surveillance tool currently indicates a 67.5% probability that the Fed will raise the benchmark rate again by 25 basis points in May. Approximately 32.5% of investors using the Fedwatch tool are betting that there will be no rate hikes next month.
While the market is pricing in a 25 basis point hike next month, several economists believe it will likely be the last rate hike of 2023. Even though policymakers believe the inflation rate may drop to the region of the 2%, economist and gold lover Peter Schiff has argued on several occasions that the “days of US sub-2% inflation are long gone.” Schiff reiterated this belief after the CPI report was released on Wednesday.
“The catalyst for this morning’s $20 jump in the price of gold is the slightly less-than-expected rise in March CPI,” Schiff tweeted in response to the latest CPI data. “But core CPI still shot up 0.4%, which annualizes to more than 5%. The real reason gold is rising is that high inflation is here to stay. Soon, the CPI year-over-year gains will hit new highs.”
However, not everyone is as pessimistic as Schiff. Your Money Line CEO Peter Dunn spoke about the CPI data on Wednesday and emphasized that people should feel good about the recent trends at News Nation.
What do you think about the latest CPI report and its impact on the economy? Share your ideas and opinions in the comments section below.
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