The post US inflation hits 3.3% as Bitcoin jumps above $72K after CPI appeared on BitcoinEthereumNews.com. The US Bureau of Labor Statistics reported that headlineThe post US inflation hits 3.3% as Bitcoin jumps above $72K after CPI appeared on BitcoinEthereumNews.com. The US Bureau of Labor Statistics reported that headline

US inflation hits 3.3% as Bitcoin jumps above $72K after CPI

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The US Bureau of Labor Statistics reported that headline Consumer Price Index inflation rose 0.9% in March from the previous month. 

Summary

  • US March CPI rose 3.3% yearly as energy prices surged and gasoline costs jumped sharply.
  • Bitcoin climbed above $72,000 after the inflation report despite rising pressure on Federal Reserve policy.
  • Traders see a 98.4% chance the Fed will keep rates unchanged in April.

On a yearly basis, CPI increased 3.3%, keeping inflation above the Federal Reserve’s 2% target.

The report showed that energy costs drove much of the monthly increase. The energy index rose nearly 11% during the month, while gasoline prices climbed 21.2%, making fuel the main source of price pressure in the latest reading.

March marked the first full month in which the US-Iran war shaped inflation data. Higher fuel costs pushed the headline number above the pace seen in February, when CPI rose 0.3% on the month and 2.4% from a year earlier.

At the same time, core CPI came in slightly lower than forecast. Core inflation, which excludes food and energy, rose 2.6% on a yearly basis, compared with market expectations of 2.7%. That reading showed that underlying price growth remained more stable even as energy prices surged.

Moreover, the inflation report kept attention on the Federal Reserve’s next policy move. Price stability remains part of the central bank’s dual mandate, alongside maximum employment, and inflation above target has continued to shape rate expectations.

According to CME Group’s FedWatch tool, traders see almost no chance of a rate cut at the April Federal Open Market Committee meeting. Market pricing showed a 98.4% probability that the Fed will leave rates unchanged, while officials have also not ruled out further tightening if inflation stays elevated.

Source: CME Group

Bitcoin rises after CPI release

Bitcoin moved higher after the CPI data was released, even as the inflation reading pointed to ongoing pressure on consumer prices. The asset briefly touched the $73,000 level and continued to trade above $72,000 later in the session.

At the time of writing, Bitcoin traded at $72,780, up 1 % over 24 hours and 9% over seven days.

Source: https://crypto.news/us-inflation-hits-3-3-as-bitcoin-jumps-above-72k-after-cpi/

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