US Consumer Price Index Rises 0.1% in March, Annual Inflation up 5% From Last Year

On Wednesday, the U.S. Bureau of Labor Statistics published the Consumer Price Index (CPI) report, which noted that ostentation roseate 0.1% past period successful March and 5% from a twelvemonth ago. Annual ostentation has dropped for 9 consecutive months pursuing the 9 times the U.S. Federal Reserve raised the national funds rate.

U.S. Inflation Cools for the 9th Straight Month

Investors were pleased to perceive the latest U.S. Consumer Price Index (CPI) study connected Monday, which noted that ostentation has cooled implicit the past 9 months. “The Consumer Price Index for All Urban Consumers (CPI-U) roseate 0.1% successful March connected a seasonally adjusted basis, aft expanding 0.4% successful February,” the U.S. Labor Department explained connected Wednesday. The quality follows the U.S. cardinal slope raising the benchmark involvement complaint by 25 ground points past month.

The Fed has accrued the national funds complaint 9 times successful a row, to a full of 475-500 ground points. The latest information indicates that ostentation has dropped importantly since past twelvemonth successful the U.S., but it is inactive acold from reaching the Fed’s stated extremity of 2%. After the CPI study was published, the planetary crypto economy’s full marketplace capitalization jumped to $1.23 trillion. It had dropped a fewer percent points connected the nighttime of April 11, 2023, astatine 10:45 p.m. Eastern Time.

Currently, bitcoin (BTC) is trading supra the $30,000 range, up 0.80% aft the Labor Department’s CPI study was published. Gold is up 0.81% and trading for $2,021 per troy ounce, portion metallic is up 1.82% to $25.60 per ounce connected Wednesday greeting astatine 9:30 a.m. Eastern Time. The CME Fedwatch tool presently indicates a 67.5% accidental that the Fed volition rise the benchmark complaint again by 25 ground points successful May. Roughly 32.5% of investors utilizing the Fedwatch instrumentality are betting that determination volition beryllium nary complaint hike adjacent month.

While the marketplace is pricing successful a 25-basis-point summation adjacent month, respective economists believe it volition apt beryllium the last complaint hike of 2023. Despite policymakers believing the ostentation complaint tin driblet down to the 2% region, economist and golden bug Peter Schiff has argued connected respective occasions that America’s “days of sub-2% ostentation are gone.” Schiff reiterated this content aft the CPI study was published connected Wednesday.

“The catalyst for this morning’s $20 leap successful the golden terms is the March CPI rising a spot little than expected,” Schiff tweeted successful effect to the latest CPI data. “But halfway CPI inactive spiked 0.4%, which annualizes to implicit 5%. The existent crushed golden is rising is that precocious ostentation is present to stay. Soon YoY CPI gains volition deed caller highs.”

Not everyone is arsenic pessimistic arsenic Schiff, however. The CEO of Your Money Line, Peter Dunn, talked astir the CPI information connected Wednesday and emphasized that radical should consciousness bully astir the caller trends connected News Nation.

What are your thoughts connected the latest CPI study and its interaction connected the economy? Share your insights and opinions successful the comments conception below.

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