Bitcoin‘s price surged to $61,800 following the announcement of a 2.9% headline inflation rate. Although this figure is lower than yesterday’s Producer Price Index (PPI) data, it still reflects a decline in headline inflation. However, a monthly rise indicates room for improvement. During his address, U.S. President Joe Biden emphasized the importance of examining the Consumer Price Index (CPI) report’s specifics.
What Did Biden Say About Inflation?
Cryptocurrencies benefit from reduced inflation and the Federal Reserve’s normalization of interest rates. U.S. markets initially responded positively, but detailed inflation data slightly tempered expectations for a 50 basis point cut in September. Despite this, the likelihood of a September rate cut remains strong. Access COINTURK FINANCE to get the latest financial and business news.
Biden remarked, “Prices are still too high. Large companies are not doing enough to lower prices. There is still much work to be done on inflation, but we are making real progress.”
What Are the Key Points in the Inflation Report?
The U.S. Bureau of Labor Statistics reported a 2.9% annual increase in the all-items index. Notably, the housing index rose by 0.4% in July, accounting for 90% of the monthly increase. Important report highlights include:
- The energy index remained unchanged after declining for two months.
- The food index rose by 0.2% in July, consistent with June.
- Rising indexes in July included housing, motor vehicle insurance, furniture, education, entertainment, and personal care.
- Declining items included used cars and trucks, medical care, airline fares, and clothing.
- The all-items index saw a 2.9% increase over 12 months, the lowest since March 2021.
- The food index rose by 2.2% over the same period.
Concrete Implications of the Data
Key takeaways from the inflation report can be summarized as follows:
- Stable energy costs may reduce volatility in other sectors.
- A steady rise in food prices suggests ongoing supply chain issues.
- Housing costs remain a significant component of inflation, affecting overall economic stability.
- Lower prices in healthcare and transportation could ease consumer burden.
The August inflation data will be revealed on September 11, 2024. The Federal Reserve’s interest rate decision will follow on September 18. The anticipation of a rate cut in September could change depending on forthcoming data. Better next month data could create favorable conditions for cryptocurrency growth between September 11 and 18.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/biden-discusses-inflation-concerns