US INFLATION TRENDS: A 12-MONTH SNAPSHOT

Over the past year, US year-over-year CPI inflation has painted an interesting picture of economic momentum. Starting at 2.9% in December 2024, inflation edged up to 3.0% by January 2025, then gradually cooled to 2.3% by April—marking the lowest point of the period. However, the decline didn't hold.

From May onward, inflation began a modest uptick. June and July both registered 2.7%, followed by a jump to 2.9% in August and another spike to 3.0% in September. By November and December, the rate settled back to 2.7%.

What does this mean for crypto traders and investors? This inflation data directly influences Fed policy decisions, which in turn impacts market risk appetite, Bitcoin valuations, and altcoin sentiment. The recent stabilization around 2.7% suggests the Fed's rate-hiking cycle may have achieved its objectives, though persistent inflation readings above 2.5% could keep monetary policy under watch. For the broader Web3 ecosystem, macro trends like these remain crucial indicators to watch when assessing market cycles and positioning strategies.