US Inflation Drops To 2.5%, Here’s How Bitcoin Responded
The US Consumer Price Index revealed that inflation dropped to 2.5% in August, down from 2.9% in July.
Bitcoin’s subdued response suggests that markets had already priced in the positive news.
US Inflation Falls To 2.5%
The US Bureau of Labor Statistics (BLS) reported that CPI inflation fell to 2.5% in August, down from 2.9% in July. The CPI measures the average price changes consumers pay for goods and services, serving as a key indicator of inflation and the dollar’s purchasing power.
Key report highlights include:
US CPI (MoM): 0.2% (previous: 0.2%)
US CPI (YoY): 2.5% (previous: 2.9%, estimate: 2.5%)
US Core CPI (MoM): 0.3% (previous: 0.2%, estimate: 0.2%)
US Core CPI (YoY): 3.2% (previous: 3.2%, estimate: 3.2%)
Economists had expected inflation to rise by 2.6% YoY in August, a slower pace than July’s 2.9%, while predicting core CPI to remain steady at 3.2%.
“CPI Coming in mostly at estimates. As always, price will lead narrative and I doubt this report changes anything in terms of direction. Whatever happens would have likely happened either way,” a prominent trader DaanCrypto noted.
This inflation data will influence expectations for the upcoming Federal Open Market Committee (FOMC) meeting. It shows inflation is moderating, possibly opening the door for a rate cut.
BeInCrypto data shows that Bitcoin is currently trading at $56,528, down 1.51% since the Wednesday session began.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
