US inflation is not optimistic. Prices in the country are rising at a significant pace. In May, they increased by 0.6 percent. month on month, and year on year by as much as 5 percent.
Inflation in the US
Consumer prices (CPI – consumer price index) in the US increased by 0.6% in May. on a monthly basis. The situation is worse on an annual basis. Year on year, inflation is as high as 5%. These are official figures provided by the US Department of Labor in its announcement.
Let us add that core inflation (excluding fuel and food prices) increased by 0.7%. mdm and 3.8 percent. yyyyy
As mBank notes, “Inflation in the US [jest] higher than in Poland: 5.0% in May. This is a surprise for the market, which positioned itself below the lower level. Bond yields are rising, the dollar a bit stronger. Core inflation also increased more than expected to 3.8% (+ 0.7% MoM, previously + 0.9% MoM). “
Inflation in the US higher than in Poland: 5.0% in May.
This is a surprise for the market, which positioned itself below the lower level. Bond yields are rising, the dollar a bit stronger. Core inflation also increased more than expected to 3.8% (+ 0.7% MoM, previously + 0.9% MoM). pic.twitter.com/6jItYlGll0– mBank Research (@mbank_research) June 10, 2021
In another tweet, the bank looked at what is mainly driving inflation. It turns out that these are car prices and transportation costs. These will, however, drop after the holiday season.
Inflation processes are slightly slowing down. Prices of cars (and transport in general) still have a significant share in inflation, but this factor will fade in the near future. Restaurants are opening up and you can see it in the prices. Household price inflation is stabilizing, but at high levels. pic.twitter.com/z50vYPCqeF
– mBank Research (@mbank_research) June 10, 2021
Overprint effect?
Why is inflation in the US rising so strongly? This phenomenon is part of a wider, global problem. Many countries in the world have applied a lockdown policy to overcome the COVID-19 pandemic. Freezing the economies was related to the need to reprint money (in the form of social programs). However, the mere increase in currency supply did not cause a price jump. Inflation depends not only on the value of banknotes in circulation, but also on the scale of money circulation. After the lockdown, it even had to increase, because consumers started going to the stores again and spending their savings.
What does this mean for cryptocurrencies?
Although high inflation is not a good phenomenon, for cryptocurrency investors it may prove to be a fuel for further increases in Bitcoin or Ethereum valuations. Not to mention gold, which today once again broke the $ 1,900 mark.
Investors – especially those with large amounts of money – are already starting to look for assets that cannot be “overprinted”. These include raw materials, precious metals and cryptocurrencies. So it is possible that we will soon find out that more institutional investors are entering the BTC market.
This is indicated, for example, by the words of Ken Moelis, the founder of the Moelis and Company investment company
– We focus on having professional knowledge. Cryptocurrencies are a big market and there is a lot of capital in this market. There are several projects. It’s like the gold rush of 1848, many people didn’t know if there was gold in the ground. But we need to know what people want and what tools they need to be successful. I try to keep track of Bitcoin and other cryptocurrencies Moelis recently told Bloomberg.
Current Bitcoin rate and other cryptocurrencies, you can always check the tabs: exchange rate Bitcoin and the cryptocurrency rate on the website . A place where you can buy BTC and more coins, include cryptocurrency exchange BitBay.net. If you do not have an account on BitBay yet, from this article you will find out how you can efficiently create one: LINK.
