Crypto News Today: The Consumer Price Index rose 0.1 percent in March 2023 on a seasonally adjusted basis, as against an increase of 0.4 percent in February. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment, the March inflation data report said. The U.S. Bureau of Labor Statistics released the Consumer Price Index (CPI) data for the month of March 2023. The index for shelter contributed the most to the overall CPI rise, offsetting the decline in energy index.
The monthly price index provides a statistical measure of the average change in prices in the market. In the current macroeconomic scenario in the US, the inflation data is all the more important as the US Federal Reserve aims to contain rise in prices to the 2%, compared to the 5% inflation as per the latest data. Besides this, the central bank had to deal with the regional banking system crisis that saw some banks closing down.
Traders are hopeful that the US central bank will at some point in 2023 initiate the ‘Fed pivot’, which is the rate cuts before a no hike possibility.
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Bitcoin Price Jumps In Reaction To March US CPI Data
The U.S. stock futures rose in response to the less than expected rise in inflation for March 2023. Meanwhile, the crypto market did not respond much initially to the inflation data news but showed a 1% jump thereafter. The Bitcoin price continues to trade at $30,337 after crossing the crucial $30,000 milestone on Tuesday for the first time in around 10 months. Earlier, the crypto market showed little volatile action as traders waited for the key March inflation data.
On the other side, the target Fed rate hike for the May 2023 meeting did not show much change in response to the latest inflation data release. As per the CME FedWatch Tool, the central bank could maintain the 25 bps rate hike when the Federal Open Market Committee (FOMC) meets between May 2-3, 2023.
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