The latest US Consumer Price Index data showed a 2.5% year-over-year increase in August, which is 0.4% lower than the figure for July.
US CPI Growth in August
The US Consumer Price Index (CPI) for August showcased a moderate decline of 2.5% year-over-year. In comparison, the YoY climb for August 2023 was 3.7%, and the high for 2024 came in March at 3.5%. The Core CPI, which excludes more volatile sectors like food and energy, increased by 3.2% for August 2024, the same as the numbers for July.
Significance of CPI Report for Investors
This CPI report holds particular importance for investors as it's the last one before the September 18-19 FOMC meeting. Recall that Fed Chair Jerome Powell mentioned in late August that the time has come for the central bank to start lowering interest rates. Most experts now believe that the promising inflation rate numbers mean that the Fed will implement a 25 basis point cut next week.
Bitcoin's Reaction to CPI Data
Bitcoin's price was relatively stable before the CPI numbers were announced. Following the announcement, it dropped to $56,200 on Bitstamp before shooting up by about a thousand dollars. However, given previous examples of significant price movements, today's $1,000 fall and rise appear rather insignificant.
The US Consumer Price Index report for August and its impact on the Federal Reserve Committee's decisions could significantly affect investor sentiment and the state of financial markets.
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