The latest report from the U.S. Labor Department’s Bureau of Labor Statistics reveals that the consumer price index (CPI) for April climbed by 0.3%. Over the last 12 months, the CPI increased by 3.4%, primarily driven by higher costs for shelter and gasoline.
US Inflation Data Indicates Slight Cooling in April; Gold, Silver, and Cryptos Climb
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Relief Rally in Financial Markets as April CPI Data Shows Subdued Inflation
According to the U.S. Labor Department’s inflation data, prices rose by 3.4% over the past year compared to the same month last year. This represents a slight decrease from the 3.5% increase noted in March, suggesting a subtle improvement in April.
“The index for shelter rose in April, as did the index for gasoline,” the CPI report details. “Combined, these two indexes contributed over seventy percent of the monthly increase in the index for all items. The energy index rose 1.1 percent over the month. The food index was unchanged in April.”
During Wednesday’s trading sessions, all four major U.S. equity indexes recorded gains, with the Nasdaq and S&P 500 outperforming the rest. Overall, the stock market responded positively to the outcome of the CPI report.
After the CPI report was released, Dan North, senior economist at Allianz Trade North America, commented to CNBC, “This is the first print in a month that wasn’t hotter than expected, so there’s a relief rally.”
Precious metals also performed well, with gold and silver registering gains of 0.39% and 0.80%, respectively. Following the CPI news, bitcoin (BTC) surged by 3.8%, achieving an intraday high of $64,699 per unit on Bitstamp. Despite a slight retreat, BTC maintains a position above the $64,000 mark, albeit below its 24-hour peak, as of 10:45 a.m. Eastern Time on Wednesday.
Over the last 24 hours, the entire cryptocurrency market has seen a 3.94% increase, reaching an estimated total value of $2.33 trillion. Ethereum ( ETH) experienced a 2.4% rise, while solana ( SOL) and toncoin (TON) saw increases of 5.8% and 5%, respectively.
Bittensor (TAO) recorded the largest 24-hour surge on Wednesday, climbing 15% against the U.S. dollar. At the time of reporting, the global trade volume within the cryptocurrency market tapped $79.64 billion, marking a 7.6% increase from the previous day.
What do you think about the latest U.S. inflation report? Share your thoughts and opinions about this subject in the comments section below.
