The latest Consumer Price Index (CPI) report indicated US inflation remained elevated in June. Year-over-year CPI reached 2.7%, aligning with economists’ projections, while prices increased 0.3% compared to the prior month.
Bitcoin showed a minor uptick in price following the CPI release. This muted reaction reflects cautious investor sentiment navigating persistent inflation and ongoing uncertainty surrounding future Federal Reserve policy moves.
Broader inflationary pressures were underscored by contributing factors, notably disruptions to key oil supply routes which pushed energy costs higher alongside global trade tensions.
Market expectations for an imminent Federal Reserve interest rate cut diminished significantly before the CPI release. Data revealed a 95.3% probability that the Fed would maintain rates at their current level of 4.25% to 4.50%.
The Federal Reserve’s upcoming Federal Open Market Committee (FOMC) meeting scheduled for July 30 will be closely monitored for insights into future monetary policy direction amid these sustained inflationary pressures.