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.
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