The Consumer Price Index (CPI) measures how prices for everyday items like food, housing, and transportation change over time. It’s published monthly by the U.S. Bureau of Labor Statistics and is a key indicator of inflation .
For crypto investors, CPI matters because it influences central bank policies. Higher inflation often leads to interest rate hikes, which can weigh on asset markets including crypto. On the flip side, lower inflation can spark expectations of rate cuts, boosting investor appetite for riskier assets like Bitcoin and Ethereum .
Recent CPI data showed monthly inflation at 0.2% and annual headline inflation at 2.7%. Core CPI, which excludes volatile items like food and energy, reached 3.1%—a six-month high . These figures are closely watched by crypto traders for clues on how the Fed might act and how markets might react.
