Connect with us

Shibarmy News

Inflation Soars to 7.5% Highest since 1982. What it Means for Crypto

Published

on

Once again inflation numbers have come in much higher than expected. According to the CPI (Consumer Price Index), all items rose by .06 Percent. This brings the annual inflation number up to 7.5%. At no other time in decades has this happened? The last time this occurred was in February of 1982.

Wall Street analysts were expecting the maximum core inflation to rise no more than.04%. Even if they were to remove gas and grocery costs, inflation would still stand at 6%. Using the inflation estimate charts with the 20 Year calculation 100.00 USD today has the same buying power of 68.00 USD.

Many people have turned to Crypto as a hedge against inflation and this could be why more and more will continue to invest in 2022 and beyond. Fed rates are likely to increase rates by .05% in March. This will not immediately cause inflation rates to decline after years of pumping money into the system.

Food, Fuel, and Housing see the biggest increases.

Fuel is up close to 50% over the past year with the exact percentage falling between 46.5 and 51.2%. New and used car prices are up as well with a rise in new cars at 12.2% and for used cars a mind-blowing 40.5%. Depending on where you live if you are a renter you know the price of shelter nowadays. Some areas have increased 1.2% and other areas in the United States are up over 70%. Finally, food prices are continuing to increase now up over 7% on the year and there seems to be no relief in sight.

This brings us to crypto. Will cryptocurrencies continue to be a hedge against inflation or will consumers find another way to protect their assets. Right now Bitcoin, Ethereum, XRP, SHIB, and others seem to be the chosen safe haven for their assets. Only time will tell where this road will lead.

 

Trending