US PCE Inflation Soars 2.7%, How’s Bitcoin Price Faring?

The crypto market was eagerly waiting for the March Personal Consumption Expenditures (PCE) inflation data for cues on the current economic health in the U.S. Notably, according to the Bureau Of Economic Analysis, the PCE Inflation for March rose 0.5% on a monthly basis, exceeding than the Wall Street expectation.

Meanwhile, the anticipation over the PCE inflation data has further intensified after the latest economic data painted a gloomy picture while dampening the investors’ sentiment. For context, the latest U.S. Gross Domestic Data (GDP) data for the first quarter, released on Thursday, April 25, has weighed on the global market sentiment.

U.S. PCE Inflation Rose 2.7%

The latest data from the Bureau Of Economic Analysis showed that PCE inflation for March rose 0.5%, following a surge of 0.3% in the prior month. Notably, the market was expecting a similar advancement of 0.3% on a month-over-month (MoM) basis for the month.

Simultaneously, on a yearly basis, the PCE inflation soared 2.7%, after increasing 2.5% in February and more than the market expectations of 2.6%. Besides, the Core PCE inflation, excluding the food and energy prices, rose 0.3% on a MoM basis and 2.8% on a yearly basis.

Notably, the market was also expecting the core PCE inflation to surge 0.3% monthly. On a year-over-year (YoY) basis, the anticipation was 2.7%. Meanwhile, the hotter-than-anticipated inflation data has further weighed on the market sentiment, fuelling concerns over a further delay in the Federal Reserve’s policy rate cut plans.

For context, the U.S. Federal Reserve has kept the inflation higher to rein the inflation, which has so far forced many investors to stay on the sideline. In addition, the recent hawkish comments from the Fed officials signaled a potential delay in their rate cut plans, as the inflation still stayed above their 2% target range.

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