Crypto: Alternative Inflation Data Shows Sharp Cooling In Us Cpi Amid Fed...

Real-time Truflation data show US price pressures easing, a shift that could reshape expectations for Fed policy and influence cryptocurrency and risk-asset markets.

Alternative inflation data is pointing to a sharp cooling in US prices, reinforcing the case for interest rate cuts and carrying broader implications for risk assets, including cryptocurrencies.

After the Federal Reserve paused rate cuts last week and signaled no clear path to near-term cuts, real-time inflation data suggest policymakers may be out of sync with rapidly improving price conditions.

Truflation, an alternative inflation tracker that aggregates millions of daily price points from tens of independent data providers, showed broad-based cooling across its US inflation indexes.

As of Sunday, Truflation’s US Consumer Price Index (CPI) stood at 0.86% year over year, down from 1.24% the previous day.

The platform’s reading of core personal consumption expenditures (PCE), the Fed’s preferred inflation gauge, came in at 1.38%, well below the central bank’s 2% target.

“All our indexes are calculated daily as a year-over-year percentage rate, using millions of data points from tens of data providers,” Truflation said Sunday.

The figures stand in sharp contrast to official government data, which showed annual CPI at 2.7% in December and core PCE at 2.8% in November.

As Cointelegraph recently reported, the Fed’s interest rate trajectory has significant implications for the US dollar, global liquidity conditions and financial markets. Rate cuts are widely viewed as a headwind for the dollar, a dynamic that has historically supported risk assets such as Bitcoin (BTC) and the broader crypto market.

Related: Crypto’s 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets

Source: CoinTelegraph