• US Labor Department announced the inflation numbers (CPI) for the last month of 2022, standing at 6.5% YoY.
• Core CPI increase was also announced at 5.7%.
• Both figures are the highest December jumps in over 40 years.
The US Labor Department recently announced the inflation numbers (CPI) for the last month of 2022, painting a picture of a robust economy that is not afraid of rising prices. The figures, which were expected to be around 6%, were announced as 6.5% for the general CPI and 5.7% for the core CPI (excluding food and energy). This marks the highest December jumps in over 40 years, indicating that the US economy is growing at an accelerated rate even in the face of rising prices.
The 6.5% YoY increase in the CPI could be attributed to the resurgence of the US economy which has seen an uptick in consumer spending and employment. The US unemployment rate currently stands at 5.8%, the lowest since the pandemic hit the US economy last year. Meanwhile, consumer spending is expected to increase further in the coming months as the US government continues to roll out stimulus measures.
The 5.7% increase in the core CPI is also noteworthy as it is the highest December jump since 1982. This indicates that the underlying inflationary pressures in the US economy are on the rise and prices of goods and services are likely to go up in the near future. This could have an impact on the US dollar, potentially weakening it as investors seek more stable investments.
The news of the US CPI numbers has also had an effect on the cryptocurrency market, as Bitcoin reacted with a sudden move that took it southward by a few hundred dollars. Although it is difficult to predict the exact impact of the CPI figures on the cryptocurrency market, it is clear that the news of higher inflation in the US economy has had a negative effect on Bitcoin.
Overall, the US Labor Department’s announcement of the CPI figures for the last month of 2022 is indicative of a robust economy that is not afraid of rising prices. This has had an impact on the cryptocurrency market, with Bitcoin reacting with a sudden dip. Nevertheless, the underlying inflationary pressures in the US economy are on the rise, indicating that prices of goods and services are likely to go up in the near future.