Key facts
- July US CPI inflation was 3.4% year-over-year and 0.1% month-over-month.
- Core CPI inflation was 2.5% year-over-year and 0.2% month-over-month.
- Bitcoin traded near $64,000 following the inflation data.
- Market odds for a September Fed rate hike decreased to 44%.
U.S. consumer price index (CPI) inflation in July came in line with expectations, rising 0.1% month-over-month and 3.4% year-over-year. Core CPI, excluding food and energy, also met forecasts, increasing 0.2% month-over-month and 2.5% year-over-year. Following the data release, Bitcoin rebounded to trade around $64,100, up from an intraday low of $63,400. The inflation figures have eased concerns about a potential Federal Reserve rate hike this year, with market odds for a September hike falling to 44%. Treasury yields also declined following the report. Fed President Austan Goolsbee had previously identified inflation as the economy's primary challenge, while Neel Kashkari, an FOMC voting member, advocated for rate hikes to combat it. Attention now shifts to the upcoming Producer Price Index (PPI) data.