Today are again the latest inflation figures (CPI) from the United States announced by it Bureau of Labor Statistics. What seems? Inflation cooled somewhat in November compared to a month earlier. In November inflation was 7.1% on an annual basis. That means a monthly increase of just 0.1% in November.
US CPI
This while economists and analysts had predicted a monthly increase of 0.3%. Inflation is therefore not too bad again. Good news for the entire economy, in fact. However, we still have to wait for statements from the US central bank, the Federal Reserve.
🔥 BREAKING:
CPI comes in at 7.1%.
Core 6.0% while 6.1% expected
— Michael van de Poppe (@CryptoMichNL) December 13, 2022
The Fed is expected to raise interest rates by 50 basis points this time. That would mean that the central bank’s stubborn policy may be waning somewhat. This forecast is of course reinforced by the new inflation figures. After all, raising interest rates is mainly done to curb inflation.
However, the better than expected inflation in November does not guarantee an easing policy from the Fed. We will know later this week what the central bank decides.
Bitcoin price pump
As a result of the positive news, the price of bitcoin (BTC) very volatile. The price shot up when the CPI figures came out. Bitcoin was already busy with a nice increase, but the good news catapulted the price even higher. BTC even briefly reached the $18,000 price point, which we haven’t seen since the beginning of November!
In about 2 minutes the course of the king of the cryptocurrencies rise nearly 3%. Then it consolidated at $18,000. At the time of writing, the price of BTC still above $17,900.
It is of course no surprise that the price reacts strongly to the inflation figures. It happens almost every month. Publication of important economic data in the United States is associated with volatility in the crypto and stock markets.