Good news from the United States!
Prices are rising more slowly 📉.
This month, the core CPI data was released, which is a way to measure how much the prices of the things we use every day have risen (excluding food and gasoline, because those fluctuate a lot) 🛒⛽.
The result was 2.8% in March, and the important thing is that it is the second consecutive month that it has decreased.
That is to say: prices continue to rise, but more and more slowly ⏳.
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And why is that good? 🤔
Because when the CPI decreases, it means that inflation is also decreasing. That is to say, prices continue to rise, but much more slowly 📉.
And that brings calm to the economy.
When inflation decreases:
People can plan their expenses better 🧾
Companies don't have as much pressure to raise prices 🏷️
And the central bank no longer needs to raise interest rates 📉
This is key, because lower interest rates make borrowing cheaper, consumption and investment increase, and markets react positively 📈.
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And what does that have to do with cryptocurrencies? ₿🚀
When interest rates decrease (or stop rising), investors feel more comfortable putting their money into riskier things, like cryptocurrencies.
That's why a decrease in the CPI can be a good sign for the crypto world ✅.