Annualized inflation slowed to 6.5% in December from 7.1% previously, in line with economists' forecasts.
The consumer price index (CPI) slipped 0.1% in December, broadly in line with expectations for a flat reading. On an annualized basis, the CPI rose 6.5%, in line with expectations, down from 7.1% a month earlier. The core CPI, which strips out volatile items such as food and energy, rose 0.3 percent in December, in line with expectations. The annualized core CPI rose 5.7%, also in line with expectations, down from 6% in November.
Bitcoin ( BTC ) fell around $150 on the news, with traders bidding up the cryptocurrency days ahead of this morning's report, hoping that inflation could fall further. While December marked the sixth straight month of moderation in U.S. inflation (which peaked at 9.06% in June), it remained well above the Fed's 2% target.
Bitcoin has risen from around $16,500 in early 2023 to a one-month high of $18,250 earlier Thursday. While some of the uptick may simply be due to some investors buying dips after an ugly 2022 run for cryptocurrencies, at least some of the gains can be attributed to optimism that the Federal Reserve’s monetary tightening cycle could end sometime in early to mid-2023.
