US Inflation Meets Forecasts, Keeping Bitcoin’s Fed Bet Alive

The latest U.S. inflation data landed exactly where economists expected, removing the immediate risk of an upside surprise and leaving cryptocurrency investors focused on what the Federal Reserve does next.

The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index (CPI) rose 3.4% year-over-year in July, matching consensus estimates while slowing from June's 3.5%. Core CPI, which excludes volatile food and energy prices, also met expectations at 2.5% year-over-year, down from 2.6% previously.

Inflation Meets Expectations

Markets entered the release treating July's CPI report as one of the most important macroeconomic events before the Federal Reserve's September policy meeting.

Economists broadly expected headline inflation to cool to 3.4%, while core inflation was forecast to ease to 2.5% after June's surprisingly soft report. The data ultimately delivered exactly that outcome, suggesting inflation continues to moderate without producing another significant downside surprise.

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