Bitcoin’s price showed a modest drop on Thursday following the release of fresh US inflation data, with markets parsing the figures for clues on the Federal Reserve’s policy path.
Bitcoin, which often reacts to CPI data due to its implications for interest rates and the dollar, moved briefly lower to $113,823 following the report.
Annual Inflation Hits 2.9% in August, US CPI Data Shows
According to the US Labor Department, the Consumer Price Index (CPI) rose 2.9% year-over-year in August, in line with expectations of 2.9%. This follows a July CPI reading of 2.7%.
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The Consumer Price Index measures retail inflation and is closely watched as a key economic indicator.
Meanwhile, the Producer Price Index (PPI), which tracks wholesale inflation, unexpectedly fell in August due to lower trade services margins and modest increases in goods costs. The figures came in weaker than expected at 2.6% year-over-year, well below the 3.3% forecast. The softer PPI print reinforced expectations for Fed rate cuts and boosted risk sentiment across equities and crypto markets.
“With labor market figures recently revised sharply downward and signs of economic slowdown emerging, this inflation report will be the final key data before the Federal Reserve’s September meeting, and will heavily influence t
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Author: Ann Maria Shibu
