November US CPI Data Reaches 3.1%, Bitcoin Stabilizes at $41,800

Key Points:

• The November US CPI data rises as expected, with a 0.1% monthly increase.
• Core inflation aligns with predictions at 0.3%, with the Federal Reserve likely to maintain rates at 5.25%–5.5%, despite market speculation.
• Investors tread cautiously as Bitcoin remains stable at $41,800 post-report, while the crypto market experiences fluctuations after recent highs.

In a highly anticipated release, the Bureau of Labor Statistics unveiled the November US CPI data, revealing a 3.1% surge in inflation, meeting market expectations. The all-items index showed a 0.1% monthly advance, aligning with projections and marking a slight decrease from October’s 3.2% increase.

US November US CPI Data Holds Steady at 3.1%

The Core Consumer Price Index (CPI), excluding food and energy, experienced a 0.3% uptick, in line with predictions, with an annual core inflation rate of 4%, consistent with market forecasts. Monthly headline CPI saw a 0.1% rise, meeting expectations and surpassing October’s 0.0%.

Core CPI, excluding volatile items, increased by 0.3% monthly, as expected. Investors, eagerly awaiting November US CPI data for insights into the economy’s trajectory, noted the Federal Reserve’s commitment to a data-driven approach. Despite declining inflation and signs of a cooling labor market, speculation arises regarding a potential policy shift.

Federal Reserve Rates and Cryptocurrency Trends

Bitcoin’s price remained relatively stable at $41,800 following the November US CPI data. The market expected further inflation softening, reinforcing the belief that the Federal Reserve will maintain interest rates in its year-end meeting.

While today’s inflation data is unlikely to prompt a shift in market participant positioning, there is speculation that the Federal Reserve will maintain its benchmark fed funds rate at 5.25%–5.5% in the next two policy meetings.

Amid soaring speculations over the November US CPI data, investors have reacted cautiously. The crypto market experienced a bull run last month, propelling major cryptocurrencies like Bitcoin and Ethereum to yearly highs before witnessing a notable decline this week.

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