- US inflation rate exceeded predictions, reaching 4.2% in December.
- Initial market reactions vary across sectors.
- Federal Reserve monitoring may impact future interest rate decisions.
On December 19, the final US 12-month inflation rate expectation for December was reported at 4.2%, slightly higher than the anticipated 4.1%, according to Xinhua Finance.
The higher-than-expected inflation figure could influence future Federal Reserve decisions on interest rate management, impacting economic forecasts and potentially affecting market sentiment globally.
US Inflation Rate Peaks at 4.2% in December
Federal Reserve official John Williams noted that “technical factors from November’s data may have slightly suppressed figures, resulting in figures lower than the actual levels,” attributing ~0.1 pp drop to October/early November data gaps.
According to CoinMarketCap, Ethereum (ETH) is priced at $2,971.70 as of December 19, 2025. Its market cap stands at $358.67 billion, dominating 12.12% of the market, while the 24-hour trading volume of $31.19 billion reflects a 17.19% change. Prices have been volatile with a 90-day decrease of 33.66%.
Coincu’s research team suggests that this inflation data could push the Federal Reserve towards interest rate hikes if inflation persists, potentially prompting volatility in cryptocurrency markets.
Crypto Market Reactions to Inflation Surprises
Did you know? Despite the expected inflation rate increase, Bitcoin experienced gains in previous lower-than-expected CPI data announcements, demonstrating crypto’s unpredictable reaction to macroeconomic indicators.
Historical data shows the interconnectedness of macroeconomic policies and crypto valuations, indicating a need for close observation.
Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 19:13 UTC on December 19, 2025. Source: CoinMarketCapFederal Reserve official John Williams noted that “technical factors from November’s data may have slightly suppressed figures, resulting in figures lower than the actual levels,” attributing ~0.1 pp drop to October/early November data gaps.
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Source: https://coincu.com/markets/december-us-inflation-expectation-impact/
