- China witnessed a 2.1% CPI rise in May.
- The USA announced that it expects its CPI to rise 5.9% yearly.
- People are flocking to crypto as inflation reaches new highs.
According to trends seen across the world, people are flocking to anything they can use as an inflation hedge while inflation reaches new highs.
Data reveals that even though China’s consumer price index (CPI) slightly hiked last month, the factory gate inflation fell for the seventh month consecutively. The CPI increased by 2.1% in May.
While the Chinese government experienced a fall in CPI, nine hours later, the US government announced that it was expecting its CPI to rise by 5.9% year on year.
Economists estimate the consumer price index to rise by 0.7% in May, up from 0.3% in April, according to Dow Jones. On a year-over-year basis, that works out to 8.3 percent, the same percentage as in April. The CPI data will be released on Friday.
Inflation has also peaked considerably high in the US, hitting 8.5% in March. The market has been eyeing the inflation rate, which eventually determines how the FED will hike interest rates. The exact CPI rates will be out once the CPI data is released.
Amid the plummeting economic state, people are looking to crypto. Despite opposition, cryptocurrency is frequently regarded as an inflation-resistant asset. For inflation protection, gold and real estate have historically been the go-to investments. The value of these assets often stayed stable or even increased during inflationary periods. Crypto has shown that it is capable of carrying the torch.
Bitcoin is the first and largest cryptocurrency in the world. Bitcoin’s limited number of coins is the primary reason for its anti-inflationary properties.
In addition, financial behemoths like JPMorgan (NYSE:JPM), Goldman, and Sachs have begun to offer cryptocurrency to their clients. This just adds to digital assets’ growing trustworthiness.