U.S. CPI Inflation Data$BTC

After the PCE data reflecting February was released yesterday, today we have another important inflation report—the CPI (reflecting March data), which is the first inflation data expected to show the impact of recent oil price increases. The CPI is expected to be 3.4%, significantly higher than last month's 2.4%. This is the largest month-over-month increase in CPI since the COVID-19 pandemic began and reveals the real impact of rising global oil prices.
This remains just a single data point and does not represent a trend, but if the CPI stays at this level or rises further, it will pose a serious challenge to the Federal Reserve, which will adjust policies accordingly to curb inflation. Since October last year, CPI has been declining, allowing the Fed to support the labor market through rate cuts and providing significant support to asset markets.
If the CPI begins a new upward trend, we can expect the market to start pricing in the possibility of rate hikes this year, thereby exerting greater pressure on asset markets and supporting the dollar. Data below 3.4% in the short term (non-macroeconomic) will be viewed as positive because it indicates that the CPI increase is less than expected; whereas above 3.4% suggests the CPI situation is worse than anticipated. If oil prices remain high, I expect upcoming CPI data to also be significantly above the Fed’s 2% target level. Inflation trends remain a key factor influencing asset markets. #Gate广场四月发帖挑战