Bitcoin Briefly Pumps As US Inflation Breaks Another 40-Year High
The US Bureau of Labor Statistics (BLS) unveiled the Consumer Price Index (CPI) reading for March 2022 earlier today. It showed year-over-year inflation at 8.5%, breaking another 40-year high.
The CPI tracks the prices of common consumer goods in the United States, such as food, energy, shelter, and transportation. The BLS updates monthly CPI figures roughly ten days into each following month.
This month shows an all items index increase of 8.5% from last March, up from February’s 7.9% annual reading. This is reportedly the highest figure seen since December 1981.
However, many Bitcoiners suspect that inflation is worse than is being reported. “Inflation is worse than you think, and Bitcoin is better than you know,” tweeted MicroStrategy CEO Michael Saylor today.
According to the report, gasoline, shelter, and food were the largest contributors to the increase. Gasoline alone accounted for half of the all-items increase, up 18.3% from last month alone. Over the last year, it’s done up 32%.
Soaring gas prices have been a pertinent issue since President Biden enforced sanctions against Russian oil imports.
By comparison, the food index rose by 1% from last month, while the food at home index rose 1.5%. Over the year, it’s up 8.8%.
Bitcoin’s price has a slight tendency to react to inflation news. Its association with “digital gold” leads some to think of it as an inflation hedge, though its price has tracked stocks most accurately in recent months.
Today, Bitcoin managed to claw back above $40,500 as the inflation numbers dropped, but later dropped back below $40,000 again. It’s worth $39,639 at the time of writing.
Similarly, the S&P 500 gained 1% on the open today.
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