Outside Source
The US Bureau of Labor Statistics released the Consumer and Price Index (CPI) for February. The data shows that inflation in the world’s largest economy has decreased to 2.8% YoY compared to January’s numbers of 3%. The expectations estimated that the ratio would be 2.9%.
U.S. CPI: +2.8% YEAR-OVER-YEAR (EST. +2.9%)
U.S. CORE CPI: +3.1% YEAR-OVER-YEAR (EST. +3.2%)— Tree News (@TreeNewsFeed) March 12, 2025
The positive figures have impacted the price of Bitcoin (BTC), which pumped above $84,000 minutes after the announcement.
The decline puts the inflation rate closer to the 2% threshold, which the Federal Reserve had previously set as a healthy zone. America’s central bank closely monitors the CPI data, which is among the main factors that may influence a potential adjustment of the interest rates.
The Fed lowered the benchmark three times in 2024 but has yet to do so in 2025. Several months ago, the central bank projected two rate cuts this year that could drop the figure to a range of 3.75% to 4.00%. Reducing the percentage makes money-borrowing easier and might increase the interest in riskier assets such as BTC.
Meanwhile, the Core CPI, which excludes more volatile sectors such as food and energy, is up by 3.1% year-over-year, or slightly less than the expected 3.2%.
This article first appeared at CryptoPotato
