Annual inflation in the US fell to 4.9% in April from 5% in March, compared with economists’ forecast of 5%, according to the Consumer Price Index (CPI) report released by the US Bureau of Labor Statistics (BLS) on Wednesday. morning.
Bitcoin (BTC) price jumped more than 2% to over $28,000 within minutes of the news.
CPI rose 0.4% in April, beating expectations for a 0.4% gain and following March’s 0.1%.
Core CPI – which excludes food and energy costs – rose 0.4% in April, compared with expectations for a 0.4% gain and a 0.4% rise in March. Core CPI rose 5.5% YoY in April, compared to expectations of 5.5% and 5.6% in March.
At its last meeting in early May, the Federal Reserve’s Federal Open Market Committee (FOMC) said it was considering at least a pause in its historic rate hikes as the central bank raised its benchmark federal funds rate from around 0% in early 2022 to its current The target range is 5%-5.25%.
While the rapid rate hikes have failed to bring inflation down to its 2% target, the Fed is also keeping tabs on growing problems in the U.S. banking system that have led to the collapse of several regional lending platforms, most recently First Republic Bank.
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According to Coindesk