CPI Fell to 2.3% in April, Slightly Below Economists' Expectations

April's Consumer Price Index fell to 2.3%, slightly below economists' expectations of 2.4%, while the Core CPI remained steady at 2.8%, matching forecasts.

The latest installment of the Consumer Price Index (CPI) figures from the Bureau of Labor Statistics (B.L.S.) showcased a slowdown in inflation in April, arriving slightly lower than economists' expectations.

The report, the first to capture the impact of "Liberation Day" on price changes, unveiled headline inflation at its lowest point in four years and third consecutive monthly decline.

The data also showed a stabilization of Core CPI at a level that economists had anticipated.

What happened: April’s CPI came in at 2.3%, a slight decrease from March’s reading of 2.4% and lower than the 2.4% estimate by economists, according to FactSet.

This marked the third consecutive monthly decline in headline inflation from its peak of 7% in December 2022.

Core CPI, which excludes volatile food and energy prices, remained at 2.8% in April, holding steady from the previous month and meeting economists’ forecasts.

What is impacting inflation: David Hernandez, crypto investment specialist at 21Shares, pointed out that the report signaled the economy may be holding strong despite tariff-induced price pressures.

“The Federal Reserve’s target inflation rate of 2% appears increasingly within reach, which could factor into upcoming interest rate decisions. Odds of a rate cut at the June FOMC meeting still favor a pause,” Hernandez noted.

Coinbase leads crypto equities higher: Following the inflation data, crypto-related equities surged at Tuesday’s U.S. market open.

Coinbase (ticker: COIN) shares soared 16% to reach $240 per share, spearheading the blockchain stock rally, as per data from Yahoo Finance. This furthered COIN’s momentum from May 12, when it was announced that the crypto exchange would be joining the S&P 500.

Shares of other crypto-focused companies, including Bitcoin miners Marathon Digital and Riot Platforms, also moved higher.

Broader gains were seen in U.S. stock indices, with the S&P 500 and Nasdaq both trading in positive territory.

Crypto prices lower after profit-taking: Conversely, the cryptocurrency market saw a decline of 3.4% on May 13 as traders booked some profits from recent gains.

Bitcoin price today slipped to $103,200 while Ether held at $2,540. Majors like XRP, BNB, and SOL realized some gains from the previous day. The GMCI 30 Index was down nearly 1%, according to The Block’s cryptocurrency indices.

Is this a catch-up rally?: Analyzing the market movements, Nansen’s Principal Research Analyst, Aurelie Barthere, suggested that today’s inverse price action between crypto and equities might indicate a "catch-up rally" to pre-tariff escalation levels for blockchain stocks.

She further explained that the recovery could even encompass altcoins despite the most recent downturn.

“Bitcoin is already trading close to its all-time high. But with the latest development on the tariff escalation, it seems like altcoins, crypto and U.S. equities, and the U.S. dollar index (DXY) are getting ready for a catch-up rally,” Barthere told The Block.

The Nansen analyst elaborated that the greenback might experience strength against so-called "safe-haven currencies," which could briefly hinder Bitcoin’s advance to an all-time high.

However, she noted that this move could be minimal, and the BTC rally could resume shortly.