The Consumer Price Index (CPI) and Producer Price Index (PPI) are among the most closely watched inflation reports. The CPI measures the prices consumers pay, while the PPI measures the prices producers receive.
These reports have a strong influence on the U.S. Federal Reserve’s interest rate decisions, which in turn affect riskier assets such as stocks and cryptocurrencies.
In general, inflation driven by rapidly rising consumer prices increases the likelihood of interest rate hikes, which typically puts pressure on cryptocurrencies. By contrast, inflation driven by slower price increases can support them.
These reports have a strong influence on the U.S. Federal Reserve’s interest rate decisions, which in turn affect riskier assets such as stocks and cryptocurrencies.
In general, inflation driven by rapidly rising consumer prices increases the likelihood of interest rate hikes, which typically puts pressure on cryptocurrencies. By contrast, inflation driven by slower price increases can support them.