The U.S. Bureau of Labor Statistics released its Consumer Price Index (CPI) report for April 2025, indicating that inflation remained steady.
U.S. consumer inflation slowed more than expected in April 2025, offering a modest sign of relief for markets anticipating a potential shift in Federal Reserve policy. According to the latest data from the Bureau of Labor Statistics, the Consumer Price Index (CPI) rose 0.2% in April, below the 0.3% forecast. On an annual basis, inflation came in at 2.3%, slightly lower than the 2.4% expected and the previous month’s reading.
Core CPI, which strips out food and energy prices, also edged up by 0.2% month-over-month, missing the 0.3% forecast. On a yearly basis, core inflation remained unchanged at 2.8%, matching analyst expectations.
These figures indicate that inflationary pressure is gradually easing, a development that could influence the Federal Reserve’s future rate decisions. While the data isn’t weak enough to trigger immediate rate cuts, it does suggest a continued cooling trend that could impact financial markets in the months ahead.
Crypto Market Reaction
Following the release of the CPI data, the cryptocurrency market experienced a modest uptick. Bitcoin (BTC) saw a slight increase, trading around $103,645, while Ethereum (ETH) also edged higher to approximately $2,503.84. Investors interpreted the steady inflation as a positive sign, potentially reducing the likelihood of aggressive interest rate hikes by the Federal Reserve.
The crypto market’s response reflects optimism that stable inflation could lead to more favorable monetary policies, which may benefit risk assets like cryptocurrencies. However, market participants remain cautious, awaiting further economic indicators to gauge the Federal Reserve’s next moves.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/crypto-markets-react-after-u-s-inflation-report/