Breaking: U.S. PCE Inflation Cools Down To 0.3%, Crypto Markets Turn Green
The Personal Consumption Expenditures (PCE) Price Index, which is used to calculate inflation in the United States, showed an increase of 0.3% in February. This comes following the announcement released by the U.S. Bureau of Economic Analysis. The number came in lower than 0.4% which was being anticipated by market participants.
Inflation Rises 0.3% In February
During the past 12 months, the Core PCE climbed by 4.6%, marking a small slowdown from the level seen in January. The headline PCE data grew by 0.3% monthly and 5% annually in February, compared to 0.6% and 5.3% respectively in January. The monthly data showed that energy prices fell by 0.4% while food prices grew by 0.2%, which was a milder set of numbers than what was anticipated. Prices of goods climbed by 0.2%, whereas, prices of services increased by 0.3%.
Read More: Top Mastercard-Backed Blockchain App Migrates To Hedera; Is HBAR Price Gunning For $1?
Despite some sectors experiencing lower levels of inflation, other regions continue to be adversely affected by the issue. The prices associated with housing, in particular, have skyrocketed. But, according to the Federal Reserve, the officials are presently looking past that as they anticipate a slowdown in rent spikes throughout the course of the year.
Nonetheless, officials have stated that they are still committed to bringing down prices in midst of the present banking crisis in the country and expect inflation to pursue well above the Fed’s 2% objective into 2024.
Market Reaction
Following the release of the data, stock market futures remained higher, while rates on longer-term Treasury securities fell. Futures contracts on the S&P 500 increased by 0.4%, and that on the Dow Jones Industrial Average rose by 134 points, which translates to a gain of 0.4%. The Nasdaq-100 futures on the other hand rose by 0.3% at the time of writing.
The crypto market also witnessed a marginal uptick in response to the inflation report. The price of Bitcoin (BTC) experienced an increase of 1% in the past one hour and is currently exchanging hands at $28,143. Crypto’s favorite and the reigning altcoin king, Ethereum (ETH), also rose by 0.88% and is trading close to the $1,800 range.
Also Read: Ripple CEO Calls In Congress To Take Notice Of US SEC Enforcements
- Crypto Czar David Sacks to Meet Senate Republicans In Bid To Advance Market Structure Bill
- Waller Floats ‘Payment Account’ Framework to Provide Crypto Firms Access To Fed’s Payment Rails
- Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump
- Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
