According to Jinishi Data: The U.S. Bureau of Labor Statistics reported a 0.2% increase in the Consumer Price Index (CPI) for October 2024, on a seasonally adjusted basis, maintaining the same monthly rise seen in August and July. Over the past year, the CPI has increased by 2.4% before seasonal adjustments.Core CPI, which excludes volatile food and energy costs, edged up to 3.3% in September 2024 from 3.2% in prior months, slightly above market expectations. According to Trading Economics, this persistent core inflation remains higher than the Federal Reserve's target of 2%, raising questions about future Fed policy adjustments.In October, the annual rate for core CPI stayed at 3.3%, aligning with analyst projections. Meanwhile, September’s unadjusted annual CPI rate reached 2.6%, ending a six-month downtrend and marking a three-month high. Analysts suggest that these inflation trends may affect the Federal Reserve’s policy approach in upcoming months.

#USInflationAboveTarget
Inflation above the target occurs when an economy's overall price level increases faster than the central bank's target inflation rate. This can have significant economic consequences, affecting both consumers and businesses.
Causes of Inflation Above Target:
Several factors can contribute to inflation exceeding the target rate:
Demand-Pull Inflation: Excessive demand for goods and services can outpace supply, leading to price increases. This can be driven by factors like increased consumer spending, government spending, or investment.
Cost-Push Inflation: Rising production costs, such as wages, raw materials, or energy, can push businesses to increase prices to maintain profit margins. This can be triggered by events like supply chain disruptions, natural disasters, or geopolitical tensions.

Monetary Policy: Central banks use monetary policy tools, primarily interest rates, to influence inflation. If interest rates are too low or if the central bank is too slow to react to rising inflation pressures, it can contribute to inflation exceeding the target.Expectations: If consumers and businesses expect higher inflation, they may adjust their behavior accordingly, leading to a self-fulfilling prophecy. This can amplify inflationary pressures.
Economic Consequences of Inflation Above Target:
Inflation above target can have various economic consequences:
Decreased Purchasing Power: As prices rise faster than incomes, consumers' purchasing power diminishes, reducing their ability to afford goods and services.Uncertainty and Investment Discouragement: High and volatile inflation can create uncertainty for businesses, making it difficult to plan and invest. This can hinder economic growth.Income Inequality: Inflation can disproportionately affect low-income households, as they spend a larger portion of their income on essential goods and services that are more likely to experience price increases.Interest Rate Hikes: Central banks may respond to rising inflation by increasing interest rates to cool down the economy. This can increase borrowing costs for businesses and consumers, potentially slowing economic activity.
Central Bank Response to Inflation Above Target:
Central banks typically use a combination of monetary policy tools to address inflation above target:
Interest Rate Hikes: Increasing interest rates makes borrowing more expensive, reducing demand for goods and services and slowing down economic activity.Quantitative Tightening: Reducing the money supply through measures like selling government bonds can also help curb inflation.Forward Guidance: Central banks may communicate their intentions to future policy actions to influence market expectations and shape economic behavior.
It's important to note that the appropriate response to inflation above target depends on the specific economic circumstances and the underlying causes of inflation. Central banks must carefully balance the need to control inflation with the desire to maintain economic growth and stability.

The US crypto market has been experiencing a surge, with Bitcoin crossing the $90,000 level for the first time, fueled by Donald Trump's pledge to reduce cryptocurrency regulations ¹. This increase is also linked to the rising inflation rate in the US, which reached 2.6% in October 2024 ².
Inflation, in simple terms, is the process by which a currency loses value over time, causing prices of goods to rise ³. This can impact the crypto market, as investors may seek alternative assets like Bitcoin, which is often touted as a hedge against inflation ⁴.
Key Market Trends:
•⁠ ⁠Bitcoin Price Surge: Bitcoin gained 3.63% to $91,519.00, while Ethereum rose 0.46% to $3,295.60 ¹.
•⁠ ⁠US Dollar Rise: The US dollar rose to its highest level since April 16, fueled by increasing inflation data ¹.
•⁠ ⁠Inflation Rate Increase: The US inflation rate increased to 2.60% in October from 2.40% in September of 2024 ².
These trends indicate a shifting market landscape, with investors eyeing crypto as a potential hedge against inflation. However, it's essential to keep in mind that the crypto market is highly volatile and subject to change ¹!!
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