US Inflation for February Hits 7.9%, ECB Slows Asset Purchases

cryptonews.com:

US inflation numbers hit 7.9% in February, up from 7.5% the month before, and in line with expectations. Bitcoin (BTC) immediately jumped higher on the news, before later reversing lower again.

“The 12-month increase has been steadily rising and is now the largest since the period ending January 1982. The all items less food and energy index rose 6.4 percent, the largest 12-month change since the period ending August 1982,” the US Bureau of Labor Statistics wrote.

At 13:40 UTC, BTC stood at USD 39,300, nearly unchanged during the first 10 minutes after the figure was released, while ethereum (ETH) traded at USD 2,600, also unchanged for the first 10 minutes. Meanwhile, the price of gold reversed losses from earlier today, trading up by 0.2% over the same time period to once again move above the key USD 2,000 mark to USD 2,006.

The US inflation figure was released after the European Central Bank said that its bond purchase program would be reduced sooner than previously expected, citing the inflationary pressures that the war in Ukraine has caused on the European continent.

“The Russian invasion of Ukraine is a watershed for Europe,” the ECB’s statement said. 

It added that the central bank will “take whatever action is needed to fulfil the ECB’s mandate to pursue price stability and to safeguard financial stability.”

Notably, the ECB also removed a mention from its statement that said interest rates could go lower than their current level. It added that changes to the interest rate would come “some time after” bond purchases had been phased out completely.

The euro responded to the news by moving up versus the US dollar immediately after the statement was issued.

Meanwhile, commenting ahead today’s release of US inflation