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U.S. consumer inflation eased to 3.4% in July, matching expectations and slipping from 3.5% in June. Consumer prices rose 0.1% from the previous month after falling 0.4% in June.
Bitcoin showed little immediate reaction to the release, trading around $63,900 as the inflation figures came in broadly in line with forecasts.
Core CPI Falls to 2.5% as Energy Prices Drop 1.5%
Core CPI, which excludes food and energy, increased 0.2% in July and 2.5% from a year earlier. The annual core rate fell from 2.6% in June. Shelter costs increased 0.1% during the month and accounted for roughly two-thirds of the headline CPI increase. Food prices also rose 0.1%, while the energy index declined 1.5%.
Energy prices remained 14.7% higher than a year earlier, while food prices were up 3.0%. Annual headline CPI has now slowed for two consecutive months. CPI remains elevated, although the Federal Reserve formally defines its 2% inflation objective using the Personal Consumption Expenditures price index rather than CPI.
Bitcoin Stays Near $63,900 After In-Line CPI Report
Bitcoin remained close to $64,000 following the 8:30 a.m. ET release. Bitcoin was trading at around $63,900 shortly after U.S. markets opened. Traditional markets were also restrained. S&P 500 futures held gains after the report, while the dollar weakened slightly.
Rate markets continued to narrowly favor no change at the Federal Reserve’s September 15-16 meeting. Traders assigned about a 55% probability to the Fed keeping its benchmark rate at the current 3.50%-3.75% range after the CPI release.
August CPI Report is Scheduled for September 11
The next U.S. CPI report, covering August, is scheduled for September 11 at 8:30 a.m. ET, four days before the Fed begins its next policy meeting. Policymakers will also receive additional employment and inflation data before that meeting, leaving July CPI as one of several readings that will shape the rate decision.
For now, Bitcoin remains near $64,000 after a CPI report that matched expectations and produced little immediate repricing across broader financial markets.
