US Inflation Rises to 7.9% in February, Fresh 4-Decade High

Bitcoin, seen by some investors as a hedge against rising prices or dollar devaluation, was little changed after the Consumer Price Index (CPI) report, which closely matched economists' expectations.

AccessTimeIconMar 10, 2022 at 1:53 p.m. UTC
Updated Mar 10, 2022 at 9:12 p.m. UTC

Brian covers bitcoin on the markets team

U.S. inflation accelerated in February to a fresh four-decade high, signaling supply and demand imbalances were little improved amid soaring gas prices.

The Consumer Price Index rose 7.9% over the past 12 months, the fastest since 1982, the U.S. Labor Department's Bureau of Labor Statistics reported Thursday. On a monthly basis, the CPI rose 0.8% in February, faster than the 0.6% increase reported for January.

So-called core inflation, which excludes volatile food and energy prices, rose 0.5% in February, slower than analysts' expectations. The core inflation rate was driven by increases in shelter prices as well as for recreation, household furnishings and airline fares.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, held steady at $39,300 five minutes after the report was released. Some traders view bitcoin as a hedge against inflation given its limited supply.

"Bitcoin declined after both a sixth consecutive hot inflation report and hopes collapsed for an immediate diplomatic resolution between Ukraine and Russia," said Edward Moya, senior market analyst at Oanda. "Bitcoin remains locked into the risk trade and will continue to trade off incremental updates from Ukraine."

Gasoline prices rose 6.6% in February, accounting for a third of the monthly increase in the overall price index, the bureau said. Analysts say rising oil prices will push inflation higher and thus push bitcoin higher.

The food-at-home index jumped a staggering 8.6% since February 2021, the largest yearly increase since 1981, the Labor Department said. Beef rose 16% over the same time period.


DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Brian covers bitcoin on the markets team

CoinDesk - Unknown

Brian covers bitcoin on the markets team

Trending

2
CoinDesk - Unknown
Argentina's Customs Office Seizes $21M in Crypto Mining Equipment

The case involves 2,233 Whatsminer machines that were improperly imported, according to the government.

CoinDesk - Unknown
3
CoinDesk - Unknown
New York Community Bank to Hold Assets Backing Circle's USDC

This marks the first time a community bank will serve as a custodian for a stablecoin.

CoinDesk - Unknown
4
CoinDesk - Unknown
4 Tips for Supporting Distributed Offices, From a Web3 Founder

Remote work can get lonely. This article is part of the Future of Work Week.

CoinDesk - Unknown