BREAKING: US Inflation Falls To 5%, Below Expectations Of 5.2%

Key Points:

• March CPI in the US was 5.0%, lower than expected and the biggest drop in a month since April 2020.
• Inflation has been attributed to the cost of “free” money and 0% interest rates.
• The price of Bitcoin rose 1.5% in response to the report.

US inflation falls to 5%, lower than expectations, the biggest drop in a month since April 2020. Inflation is attributed to “free” money and 0% interest rates. Bitcoin is up 1.5%.

In March, the Consumer Price Index (CPI) in the United States rose only 0.1%, slower than economist forecasts for 0.2%, according to the Bureau of Labor Statistics (BLS).

On a year-over-year basis, the CPI was higher by 5.0%, down from 6.0% in February and against expectations of 5.2%. The core CPI, which strips out often volatile food and energy prices, was up 0.4% in March versus 0.5% in February and in line with forecasts for 0.4%. On a year-over-year basis, core CPI was up 5.6% versus 5.5% in February, and in line with forecasts for 5.6%.

This is the biggest drop in the inflation rate in a month since April 2020. The inflation rate is now at its lowest since June 2021. Despite the decline, it has been reported by The Kobeissi Letter that 23 consecutive months with inflation above 5%, which is attributed to the cost of “free” money and 0% interest rates.

Additionally, the price of Bitcoin (BTC) rose nearly 1.5% to $30,400 in the immediate aftermath of the report, after earlier topping $30,000 for the first time since June 2022.

The recent gains of Bitcoin may have been partly influenced by the ideas that the U.S. Federal Reserve, perhaps as soon as its May 2-3 meeting, was set to end its year-plus-long string of interest rate hikes. This morning’s softer-than-forecast inflation figures may give fuel to those dovish hopes.

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Thana

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