- The US CPI dipped to 3% in June from 3.3% the previous month as per recent data.
- It has increased wagers on the possibility of a rate decrease by the US Federal Reserve.
Crypto markets and the rest of the global financial industry were waiting with bated breath for today’s US CPI numbers. Notably, compared to Wall Street’s predictions, the most recent figures from the U.S. Labor Department show that inflation slowed to 3% in June.
Market mood, which had been hurt recently by the German government’s big dump, looks to have been lifted today by the positive data. A possible upswing in the price of Bitcoin and other cryptocurrencies has also been speculated about as a result.
Possibility of Interest Rate Cut
The newest figures from the US Bureau of Labor Statistics show that the US CPI dipped to 3% in June from 3.3% the previous month. Inflation in the consumer price index (CPI) was steady in May compared to April, but it rose by 0.1 percent when looking at the data on a month-over-month (MoM) basis. It was consistent with market expectations, even with the little increase.
Furthermore, it has increased wagers on the possibility of a rate decrease by the US Federal Reserve as early as September. However, according to Core CPI numbers, which do not include food and energy costs, inflation slowed to 3.3% in June from 3.4% the month before. Core CPI falls short of market expectations and May’s number of 0.2% on a month-over-month basis, coming in at 0.1%.
The price of bitcoin initially surged on the news and rose all the way till $59,270. However, the bears pulled the price down and at the time of writing, it is trading at $57,519 as per data from CMC.
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