- US inflation data released
- They give the market reason to be optimistic
The United States released a key economic metric – the consumer price index. It coincided with the consensus (that is, with the forecast of analysts).
So, the CPI in the US in February 2023 increased by 0.4%. On an annual basis, inflation slowed down to 6%. This is the eighth year-on-year decline in inflation in a row. The CPI is now at its lowest level since September 2021.
The core US consumer price index (excluding food and energy) fell to 5.5%. This is the fifth consecutive year-on-year drop and the lowest level since November 2021.
What does it mean
Firstly, such indicators indicate that the Fed’s tactics to combat inflation have yielded results. Secondly, it is an indicator of a strong US economy, despite all the rumors about its imminent collapse.
The weakening of inflation will allow the central bank to take a break from raising rates. Many analysts even predict that the regulator will cut the rate at the next meeting on March 22 to prevent a bank collapse.
If it does, it will give the market more “available” money and calm investor panic. Which will reflect very well on the stock market and the crypto market.
After the release of inflation data, bitcoin has already overcome the $25,000 mark.
But traders need to be careful because there is high volatility on such days. What events will affect the market in the coming days, read in our calendar.