U.S. Inflation Figures: July Insights
The Consumer Price Index (CPI) for the U.S. rose by 0.2% in July, aligning with forecasts as the Federal Reserve prepares for potential rate cuts at the mid-September meeting.
- The CPI increased from a decline of 0.1% in June, meeting expectations for a 0.2% rise.
- Year-over-year, the CPI stands 2.9%, slightly below the 3% forecast and consistent with June's figures.
Core CPI Trends
The core CPI, which excludes food and energy costs, also rose by 0.2% in July, matching expectations and improving from 0.1% in June. On a yearly basis, the core CPI is at 3.2%, in line with forecasts yet slightly down from June's 3.3%.
Bitcoin's Market Reaction
Following the inflation report, the price of Bitcoin (BTC) saw modest gains, trading around $61,200.
Fed Rate Cut Expectations
Prior to the data release, speculation on the Fed's next move was intense. The CME FedWatch Tool indicated a 52.5% chance of a 50 basis point rate cut, with just 47.5% predicting a 25 basis point reduction. The report is not expected to significantly alter these odds.
Upcoming Economic Indicators
Investors are keenly awaiting further macroeconomic indicators, including initial jobless claims and retail sales reports. Additionally, the upcoming Jackson Hole gathering may provide insights into future monetary policy shifts.
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