Inflation soars in the US, April CPI up 4.2%

English May 17, 2021

Rising market concerns about inflation have been a recurring theme in news headlines in the United States. The most recent data from the CPI index, which tracks average consumer prices, confirmed the fear that inflation is getting higher and higher.

The US CPI for April stood at 4.2%, well above the forecast of 3.6% and above 2.6% in March. On a monthly basis, inflation rose 0.8% against the expected 0.2% and 0.6% last month.

As the pandemic begins to recede, economic growth will almost certainly increase this year, but the Federal Reserve has convinced the market that it will keep short-term interest rates low to stimulate the economy and boost consumption, which itself is already inflationary.

In a scenario where money loses purchasing power due to expansionary monetary policies, investors start looking for anti-inflationary assets. The scarcity of Bitcoin makes it a privileged asset for times like this, which should benefit the cryptocurrency in the short and long term.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.