Key facts
- US PCE inflation slowed to 3.7% year-over-year in June.
- PCE inflation was 4.1% in May.
- Core PCE inflation also eased.
- The cooling inflation data decreased the odds of a Federal Reserve rate hike this year.
- Bitcoin rebounded to trade above $65,000.
The U.S. Personal Consumption Expenditures (PCE) price index showed a year-over-year inflation rate of 3.7% in June. This figure represents a slowdown from the 4.1% recorded in May and aligns with market expectations. The core PCE price index, which excludes volatile food and energy prices, also eased. This deceleration in inflation has led to a decreased probability of the Federal Reserve implementing another interest rate hike in the current year. Following the release of this economic data, the cryptocurrency market saw a positive reaction, with Bitcoin's price rebounding to trade above the $65,000 mark.