The report suggests the Fed will need to continue tightening monetary policy.

By Stephen Alpher

AccessTimeIconFeb 14, 2023 at 7:06 p.m.

Updated Feb 15, 2023, at 12:21 a.m.

CDCROP: Man pushing shopping cart of groceries up line chart arrow (Getty Images)
(Getty Images)

Consensus 2023 Logo

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

The consumer price index (CPI) for January rose 0.5% versus 0.1% a month earlier, in line with economist forecasts.

On a year-over-year basis, however, inflation was running slightly hotter than hoped, coming in at a 6.4% pace in January versus 6.5% in December and against predictions for 6.2%.

The core CPI – which strips out food and energy costs – rose 0.4% in January, also in line with expectations and flat from December’s pace. Year-over-year core CPI in January was faster than forecast at 5.6% versus 5.5% expected and down from 5.7% a month earlier.

The price of bitcoin (BTC) fell about $100 in the minutes following the news, trading at $21,770 at press time. Stock index futures dipped a bit as well, with the Nasdaq 100 lower by 0.25%.

Traders are closely watching the pace of inflation, which remains elevated but has been slowing for several months. While a continued slowdown could give the U.S. Federal Reserve the space to perhaps pause its interest rate hiking cycle, Tuesday’s report suggests more work needs to be done.

For now, markets continue to expect the central bank to hike its benchmark fed funds rate another 25 basis points at each of its next two meetings (in March and May) and then pause increases.

Read more about

InflationCPIFederal ReserveBitcoin

Sign up for The Node, our daily newsletter bringing you the biggest crypto news and ideas. Email addressSign Up

By signing up, you will receive emails about CoinDesk product updates, events, and marketing and you agree to our terms of services and privacy policy.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

The leader in news and information on cryptocurrency, digital assets, and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase the stock outright in DCG.

CoinDesk - Unknown

Stephen Alpher

Stephen Alpher is CoinDesk’s co-regional news chief, in the Americas. He holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.

Follow @SteveAlpher on Twitter

Learn more about crypto flings 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain, and Web3. Head to to register and buy your pass now.

Leave a Reply

Your email address will not be published. Required fields are marked *