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Consumer Price Index (CPI) data for January showed that U.S. inflation continued to decline, with the annual rate falling to 2.4%, slightly lower than the 2.5% expected.
As for core inflation (excluding food and energy), it was in line with expectations of 2.5%, while monthly inflation recorded only 0.2%, the lowest level since May last year.
Heather Long, chief economist at Navy Federal Credit Union, explained that while utility and transportation costs continue to rise, lower prices for fuel, used cars and health care have helped keep inflation in check.
The figures were seen as representing positive news on inflation, noting that tariffs could lead to limited additional volatility.
On the market front, Bitcoin is known for its quick and erratic reactions to the release of U.S. inflation data.
In the first few minutes after the news was announced, the price rose slightly to $67,600, before rising to around $70,000 a few hours later.
The larger impact of the data may become clear later as the Fed evaluates the data provided and its potential impact on interest rate decisions in the period ahead.
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