Slight Correction in US Inflation Figures Leads to Rise in Government Bond Interest Rates and Currencies

On Friday, the United States published corrected figures on the annual development of inflation in the country. For December, the monthly rate of inflation was corrected to 0.2 percent from the previous 0.3 percent, but for the last quarter of the year, the figures remained unchanged. Prices rose during the quarter at an annual rate of 3.3 percent.

Interest rates on government bonds showed a slight fluctuation on Friday as well. The interest rate on Germany’s 10-year government bond was 3.2 percentage points higher at 2.382 percent, while Britain’s was also up by 3.3 percentage points at 4.078 percent, and Italy’s was 3.9 percentage points higher at 3.961 percent.

The inflation corrections announced a year ago have been weighing heavily on investors, renewing expectations of a rebound in inflation this time around. However, economists expect that for January, the inflation rate will have fallen to just over 2% on an annual basis which would be slowest since early 2021 .

In foreign exchange market, dollar weakened against most other major currencies with giving away about €0..927 and Yen (JPY)149 . Subscriptions to ETFs containing bitcoin launched in January has continued to grow steadily as well after it reached its highest level since beginning of January with Bitcoin price rising above $47K .

By Editor

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