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Figure Heloc 
Prior +3.2%Core CPI +3.2% vs +3.3% y/y expectedPrior +3.2%Stubborn, stubborn inflation. Headline annual inflation nudged higher in December, driven partly by higher tobacco prices. That comes after the recently-introduced excise duty increases on that front. But adding to that, airfares also saw prices rising more than a year ago – which is largely due to the Christmas holiday period.But overall, prices in general remain sticky and stubborn and that is even more evident in the core estimates.Core annual inflation remains unchanged to end the year at 3.2%. The breakdown even shows a marginal increase in both goods inflation (up to 2.2% from 2.1% previously) and services inflation (up to 4.5% from 4.4% previously). The latter of course remains the most troubling spot and is something the BOE won’t be able to take much comfort in.As things stand, it doesn’t look like were anywhere near the next rate cut. A softening labour market picture will add to potential stagflation risks this year but for now at least, the overall economic picture is still relatively resilient.
This article was written by Justin Low at investinglive.com.
đź’ˇ DMK Insight
Inflation’s stubborn persistence is raising eyebrows, and here’s why it matters for traders right now: With Core CPI holding steady at 3.2%, just shy of the 3.3% forecast, traders should brace for potential volatility in both forex and crypto markets. This inflation data suggests that the Fed might maintain its hawkish stance longer than anticipated, which could impact interest rates and, consequently, the USD’s strength. If inflation continues to defy expectations, we could see a stronger dollar, which typically pressures crypto prices. Keep an eye on correlated assets like Bitcoin, which often reacts to shifts in macroeconomic indicators. The immediate focus should be on how these inflation figures influence the Fed’s next moves, especially as we approach key meetings in the coming months. Watch for any breakout or breakdown around significant technical levels in the crypto space, particularly if Bitcoin approaches its recent highs or lows. Here’s the thing: while some may argue that inflation is peaking, the consistent rise in prices like airfares indicates underlying pressures that could keep the Fed on high alert. Traders should monitor the market’s reaction closely, especially around the next CPI release, as it could set the tone for the rest of the quarter.
đź“® Takeaway
Watch for how inflation data impacts the Fed’s decisions; a stronger dollar could pressure crypto prices, especially if Bitcoin tests key support levels.
