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The Consumer Price Index (CPI) data, released on Wednesday by the U.S. Bureau of Labor Statistics, showed that inflation increased by 0.1% in March last year and by 5% overall. Nine months after the U.S. Federal Reserve raised the federal funds rate nine times, annual inflation has decreased.
U.S. Inflation Cools for the 9th Straight Month
Investors were happy to learn from the most recent U.S. Consumer Price Index (CPI) report released on Monday that inflation has decreased over the previous nine months. The Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.1% in March on a seasonally adjusted basis, following a 0.4% increase in February, according to information released on Wednesday by the U.S. Labor Department. The announcement comes after the American Federal Reserve increased the benchmark interest rate by 25 basis points last month.
The Fed has raised the federal funds rate nine times in a row, for a total rise of 475–500 basis points. According to the most recent data, US inflation has dramatically decreased since last year, although it is still much below the Fed’s stated target of 2%. The global crypto economy’s entire market capitalization increased to $1.23 trillion following the release of the CPI report. At 10:45 p.m. Eastern Time on April 11, 2023, it has decreased by a small proportion.
The Fed has raised the federal funds rate nine times in a row, for a total rise of 475–500 basis points. According to the most recent data, US inflation has dramatically decreased since last year, although it is still much below the Fed’s stated target of 2%. The global crypto economy’s entire market capitalization increased to $1.23 trillion following the release of the CPI report. At 10:45 p.m. Eastern Time on April 11, 2023, it has decreased by a small proportion.
Several analysts predict that the 25 basis-point increase scheduled for next month will likely be the last rate hike of 2023, despite the market pricing in that increase. Peter Schiff, an economist and gold enthusiast, has repeatedly claimed that America’s “days of sub-2% inflation are gone,” although policymakers think the inflation rate can decrease to the 2% range. Following the release of the CPI report on Wednesday, Schiff reaffirmed this viewpoint.
In response to the most recent CPI figures, Schiff tweeted, “The March CPI rising a bit less than expected is the catalyst for this morning’s $20 jump in the gold price.” “But the core CPI increased by 0.4%, or more than 5% annually. High inflation is a permanent problem, which is the true cause of gold’s rise. YoY CPI growth will soon reach new highs.
But not everyone shares Schiff’s pessimism. On Wednesday, Peter Dunn, the CEO of Your Money Line, spoke about the CPI data and emphasised that people should be pleased with the current News Nation developments.
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