U.S. CPI Inflation Falls to 4.9% in April; Bitcoin Rises Above $28K

The Federal Reserve last week suggested it could pause its long series of rate hikes even as inflation remains well above its 2% target.

AccessTimeIconMay 10, 2023 at 12:37 p.m. UTC
Updated Mar 8, 2024 at 4:58 p.m. UTC

The annual U.S. inflation rate slowed to 4.9% in April from 5.0% in March and versus economist forecasts for 5.0%, according to the Bureau of Labor Statistics' (BLS) Consumer Price Index (CPI) report Wednesday morning.

The price of bitcoin (BTC) rose more than 1% to just above $28,000 in the minutes following the news.

For the month of April, the CPI rose 0.4% against expectations for 0.4% and versus 0.1% in March.

The core CPI – which strips out food and energy costs – rose 0.40% in April versus forecasts for 0.4% and March's 0.4% advance. The annual core CPI rate in April was 5.5% versus forecasts for 5.5% and March's 5.6%.

At its last meeting earlier in May, the U.S. Federal Reserve's Federal Open Market Committee (FOMC) indicated it's considering at least a pause in its historic run of rate increases that's seen the central bank take the benchmark fed funds rate from about 0% in early 2022 to the current targeted range of 5.0%-5.25%. While that fast pace of rate hikes hasn't succeeded in bringing inflation down to the Fed's 2% target, the central bank also has its eyes on the growing troubles in the U.S. banking system, which has led to the failure of a number of regional lenders, most recently First Republic Bank.

For the moment, traders are betting this morning's very modest moderation in inflation might give the Fed room for easier monetary policy. The U.S. 10-year Treasury yield has declined seven basis points to 3.45% and the 2-year nine basis points to 3.94%.

Edited by Stephen Alpher.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Stephen  Alpher

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.

Read more about