"Musk is probably happy to jump on the joke of what is a meme(coin), but investors are probably feeling real pain now," said Justin d'Anethan, Hong Kong-based head of Exchange Sales at Diginex, a digital asset exchange.
Wednesday's data from the Office for National Statistics showed that producer prices - which tend to feed through into consumer prices later - were 2.6% higher than the year before in February.
"Inflation increased sharply in January and February, and is likely to go up further in the coming months," Elderson said in a Twitter Q&A.
"This is mainly due to transitory factors, which we look through. Underlying inflation remains subdued owing to weak demand and economic slack," he added.