BlackRock reports increasing consequences for inflation in the US associated with tariffs that may impact consumer prices.
Impact of Tariffs on Consumer Prices
Glenn Purves, BlackRock's global head of macro research, noted that the June US Consumer Price Index (CPI) rose less than expected, yet tariffs are contributing to price increases. The household appliance sector is experiencing increased costs as inventory levels deplete. Purves indicated that tariffs could lead to an extended period of inflation, likely affecting consumers or businesses through higher prices or reduced margins.
Current State of the Crypto Market Amid Inflation
The cryptocurrency market remains calm amid inflationary concerns. Currently, Bitcoin (BTC) trades at $117,623.67 with a market cap of $2.34 trillion. The price of Bitcoin has increased by 0.22% over the last 24 hours and by 8.35% over the past week. Experts suggest that persistent inflationary pressures may draw institutional attention to cryptocurrencies like BTC as a potential hedge.
Conclusion and Expert Insights
It is important to note that the last tariff tensions between the US and China in 2018-19 led to cost increases primarily borne by US consumers, a concern that remains relevant today. Experts argue that the current situation requires careful analysis.
The rise in US inflation driven by tariffs raises concerns for consumers and businesses, which in turn impacts investment decisions in the cryptocurrency market.
