Thursday morning brings some highly encouraging news on the persistently high prices that have weighed down the people of the United States. The Consumer Price Index (CPI), an important economic metric that measures the average change in prices paid by consumers for various goods & services, demonstrated a considerable drop in inflation for the month of December; bringing it to its lowest level in almost a year. With the latest CPI reading coming at 6.5%, it lends further credence to the argument of a declining inflation, which can act as a catalyst for the price of volatile assets like Bitcoin (BTC).
U.S. CPI Reports 6.5% Inflation
The Core CPI, which excludes the likes of volatile energy and food prices, rose 0.3% month-on-month, which exactly matches the market expectations. September’s 6.5% increase was the biggest jump since August 1982.
According to the Bureau of Labor Statistics’ closely watched index, the underlying consumer prices advanced by the least in 15 months, therefore making it possible for the Federal Reserve to further reduce the magnitude of interest rates it has been implementing in the United States.
Prices have also decreased dramatically on a month-to-month basis, with cuts seen across the board for gasoline, utility services, medical care services, and used vehicle prices. The price hikes seen at restaurants were more moderate than expected, while the prices of new vehicles resided unchanged.
This is a developing story and is being frequently updated.
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