The global crypto market remained stable as U.S. CPI inflation for October rose 3.2%, but remained under expectations of 3.3%. It slowed down from 3.7% in September. Bitcoin, the biggest crypto price dropped marginally in reaction to the stable inflation. However, Wall Street’s main stock indexes climbed up.
Inflation shows cooling sings
The consumer price index which covers a variety of commonly used goods and services, showed no change for the month but still reflected a 3.2% increase from a year ago. In a Dow Jones survey, market experts had predicted a marginal 0.1% monthly increase and a 3.3% year-over-year uptick. This data suggests a possible moderation in inflationary pressures against ongoing challenges for the economy.
As per Waler Bloomberg, core consumer prices, excluding volatile food and energy costs registered the slowest rise in October 2023 over the past two years. It jumped by 4% from the previous year, a rate not seen since September 2021.
Wall Street surges on stable CPI
If we take a look at a three-month annualized basis, core prices grew by 3.4% which is a slight uptick from September’s 3.1%. He added that despite a general cooling trend running in core inflation throughout 2023 the recent months have shown a halt in progress.
It is important to note that, the Federal Reserve is closely monitoring core CPI as a key indicator for predicting inflation’s future trajectory. After implementing a series of interest rate hikes, the Fed has temporarily halted increases. However, the next meeting scheduled for December 12-13 remains the key.
Wall Street’s main stocks extended their lead after a cooling down inflation data. Both the S&P 500 and the Nasdaq hit a two-month high as reports indicate that U.S. consumer prices held steady in October, partly due to lower gasoline costs.
On the other hand, the digital asset market cap registered a marginal slump of 1% after the release of the CPI data. Bitcoin, and Ethereum prices dropped by 1.6% and 2.5%, respectively.