- Economists polled by Bloomberg News had predicted a result of 7.9%.
- Within minutes of the data’s release, Bitcoin’s price rose 7.6%, pushing it past $17,000.
Inflationary pressures and forecasts of extended macroeconomic uncertainty have characterized the previous several months. Most central banks across the globe have announced interest rate increases in response to growing inflation data. In reality, consumers have paid a heavy price for governments’ hawkish posture.
Recently, however, it seems like things are getting better. The latest data on the consumer price index was recently issued by the Bureau of Labor Statistics. Inflation fell to 7.7 percent in October, a new low for this year. Economists polled by Bloomberg News had predicted a result of 7.9%, thus the most recent estimate is lower. These predictions were shared by a number of financial institutions.
Crypto Market Rallies
September’s inflation rate of 8.2% was the lowest monthly reading since February. The present figure may not necessarily be a major positive takeaway, despite the fact that it is lower. However, this was met with enthusiasm in the crypto market. Within minutes of the data’s release, Bitcoin’s price rose 7.6%, pushing it past $17,000. There was, however, a short reversal that followed. Similar was the case with altcoins, most of which are trading in green.
Federal Reserve Chairman Jerome Powell acknowledged earlier this month that the central bank still had “ways to go” in its effort to reduce inflation. This would most likely be achieved by a policy of steadily rising interest rates, which would serve to dampen consumer demand.
Moreover, the Fed still has room for maneuver, and the data delivered today will determine the direction it takes at its next meeting.
