US Inflation Dips Slightly in April, Boosts Bitcoin Value

Inflation in the United States decreased slightly in April, according to the latest Consumer Price Index (CPI) report released by the government. The report revealed that the monthly inflation rate declined from 0.4% in March to 0.3%, while experts predicted a figure of 0.4%. This decrease brought the total yearly inflation rate to 3.4%, lower than the March estimate of 3.5%. Core CPI, which excludes volatile food and energy costs, also saw a slight decrease, falling from 0.4% to 0.3% on a monthly basis, and remaining unchanged from its previous level of 3.8% annually. The positive news regarding inflation has led to an increase in Bitcoin’s value, with the digital currency rising by more than 1% following the release of the report, reaching a price of $63,500. Despite these figures, recent increases in inflation have caused many to rethink their predictions for future monetary policy, as the Federal Reserve had previously expected tighter easing during 2024. However, with inflation actually increasing this year, the prospect of immediate rate cuts by the Fed seems unlikely, as reflected by the low odds of such moves being priced in by traders through the CME FedWatch Tool. Nonetheless, the recent mild inflation data has resulted in traders raising their bets for softer monetary policies moving forward.