The price of Bitcoin (BTC) saw a sharp uptick over $26,000 as the U.S. Department of Labor released the latest consumer price index (CPI) data for February 2023.
CPI rose 0.4% last month on a seasonally adjusted basis, with the department noting that the all items index denoting inflation increased by 6% over the last year.
CNBC reported that conventional markets were volatile following the release, while cryptocurrency markets reacted positively. Bitcoin saw a surge in price alongside Ether (ETH) according to data from Coinmarketcap.
CPI measures the average change over time in prices paid by consumers for a basket of goods and services. It’s calculated by the Bureau of Labor Statistics and is used as an indicator of inflation.
CPI reflects spending patterns of consumers on items such as food, housing, transportation, clothing, medical care and recreation. It’s used to adjust wages, benefits, and Social Security payments for inflation, measure economic performance, and set monetary policy.