In November, annual inflation in the United States reached 2.7%, up from 2.6% the previous month, aligning with market expectations of 2.7%.
On a monthly basis, the consumer price index rose by 0.3%, compared to 0.2% in October. The consensus forecast had anticipated a 0.3% increase.
Excluding food and energy prices, the index rose by 0.3% from the previous month and by 3.3% compared to November last year. The previous report showed figures of 0.3% and 3.3%, respectively. Analysts had expected the October pace to continue.
Prices for services excluding housing and energy rose by 0.34% after increasing by 0.31% in October, 0.4% in September, 0.33% in August, 0.21% in July, and declining by 0.05% and 0.04% in May-June. The Fed noted the importance of this metric in analyzing the inflation trajectory.
According to Bloomberg, the report indicates a halt in disinflation. Price growth rates still significantly exceed the Fed’s target level, although they are substantially lower than in 2021 and 2022, when there was a massive increase in the cost of living.
However, John Brady, managing director at RJ O’Brien, is confident that monetary authorities will cut the key rate in December, as rhetoric and the forecast trajectory have “cemented such expectations.”
The release of macroeconomic statistics caused volatile fluctuations in the range of $98,200-$98,800 for Bitcoin and $3,720-$3,750 for Ethereum.
Bitcoin’s price rose above $100,000.
Investors slightly increased the odds of the Fed continuing its policy easing cycle at the meeting on December 17-18. The swap market indicates a 92% probability of a 25 basis point move.
In the futures market, the figure stands at 97.9%. Before the data release, the odds were estimated at 88.9%.
CryptoQuant has warned of a potential pause in the digital gold rally.
Previously, Real Vision’s chief analyst Jamie Coates suggested Bitcoin might enter a correction in two to three months.