Bitcoin News Today – Higher US Inflation Expected in March CPI Report, Bitcoin Traders Watch
The March US Consumer Price Index (CPI) report will provide the latest information on inflation as the economy recovers from a pandemic-triggered recession.
The report will be of particular interest to cryptocurrency traders, some of whom view Bitcoin (BTC) as a hedge against inflation and ongoing currency devaluation.
The median forecast envisages an increase in the CPI of 0.5% compared to the previous month in March, which will accelerate slightly compared to the value of 0.4% in February. The core CPI, which excludes food and energy, is projected to increase 0.2% from 0.1% previously.
Over the past 12 months, the CPI is likely up 2.5%, faster than the 1.7% increase reported last month.
According to a survey by the New York Federal Reserve Bank in March, consumers are already expecting higher inflation as health care costs and home prices rise.
But will the Federal Reserve allow inflation to get too hot before monetary policy is tightened? Some analysts believe the Fed is at risk of falling behind the curve, an opportunity traders may expect sooner rather than later.
Central banks everywhere are grappling with similar problems as the global economy recovers from the deep economic turmoil caused by the coronavirus.
“Fears of inflation will raise Treasury prices and weaken the dollar to some extent. However, if other countries follow suit, the effect could be limited,” Fintech Zoom columnist Frances Coppola wrote in an email. “Traditional inflation hedges and high-yield assets should do well.”
Bitcoin News Today – Higher US Inflation Expected in March CPI Report, Bitcoin Traders Watch
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