Official U.S. CPI (Consumer Price Index) data that was just released shows that inflation in the United States was lower than expected in October. According to the CPI, consumer prices this October were up 7.7% on a year-over-year basis—while inflation is still substantial, analysts expected the figure for October to be 7.9%. The 7.7% figure for October is a notable improvement over the 8.2% figure from September.
The core CPI, which excludes food and fuel prices, was at 6.3% in October, compared to 6.6% in September.
Crypto markets welcome the CPI data – BTC price gained +6% in matter of seconds
A slowdown in inflation increases the likelihood that the U.S. Federal Reserve will soften its policy of raising interest rates. The fresh CPI data has been welcomed as a positive sign by both the U.S. equity markets, as well as the cryptocurrency market (which is currently dealing with massive uncertainty due to the FTX / Alameda Research crisis).
The Bitcoin price quickly jumped from approximately $16,600 to $17,700 as the CPI news broke. At the time of writing, BTC is changing hands at around $17,550. Several altcoins such as Polygon, Arweave and Solana have seen an even bigger jump on the news.