Monday, January 17

US inflation rate soars to a high not seen in 39 years

The report of the consumer price index (CPI) of the United States published this Friday and corresponding to the month of November, showed an increase of 0.8% and took the inflation rate to 6.8%, its maximum in almost 40 years.

The figure is more than triple the 2% target that the Federal Reserve (Fed) expected for this year and is the highest since July 1982. A series of higher-than-expected inflation readings is likely push the Fed to accelerate plans to phase out stimulus plans for the economy approved last year, which could be canceled several months ahead of schedule, they say media Americans.

As reported by CriptoNoticias before, the president of the United States Federal Reserve Jerome Powell has not only recognized that inflation will hit the population indefinitely, but also admitted that the Central Bank has created dollars from scratch at an unprecedented rate. The measure responds to the many tools used by the government to rescue the economy amid the coronavirus pandemic.

The Fed has also said that the rate of price increase will fall below 3% by the end of 2022, but some economists believe that inflation will not recede as quickly.

On November 10 after the October figure reached its highest recorded in the last three decades, bitcoin price climbed above $ 68,000 since the cryptocurrency is recognized as a solution to protect against inflation.

This investment method is due to the fact that bitcoin has a limited supply of coins. No matter how many people join the network, how much its value increases, or how advanced the equipment mining it is, there will never be more than 21 million BTC.

At present, it is not known what effect this new record will have on the price of bitcoin on US inflation, although at the time of writing this note, BTC is above USD 48,000 after several days below that margin.