US consumer price index rises 3.8%, highest since May 2023
The US consumer price index rose by 3.8% in April, representing the highest inflation increase since May 2023.Summary
The US consumer price index (CPI) increased by 3.8% year-over-year in April, the fastest rate since May 2023. Core CPI, excluding volatile food and energy, rose 2.8%, exceeding analyst expectations. Persistent services and shelter costs continue to drive inflation, complicating the Federal Reserve's path toward interest rate cuts.
With inflation remaining well above the 2% target, the Federal Reserve faces pressure to maintain elevated borrowing costs. This macro environment poses potential risks for crypto and other risk assets, which generally struggle when interest rates remain high. While factors like spot Bitcoin ETFs and the recent halving offer new market structural support, sustained high inflation may eliminate the possibility of rate cuts in 2024.
(Source：Crypto Briefing)