The US Consumer Price Index (CPI) declined 0.4% in June, exceeding economist forecasts of a 0.1% decline. This decrease follows May’s sharp rise of 0.5%. On a year-over-year basis, CPI was up 3.5%, below forecasts of 3.8% and May’s 4.2%. Core CPI, which excludes food and energy, was flat in June, versus forecasts of 0.2% and May’s 0.2% increase. Bitcoin rose to $63,400, up about 2% over the past 24 hours, following the soft inflation numbers.
Inflation Implications
The softer-than-expected inflation data may impact the Federal Reserve’s decision on interest rates. Fed Governor Chris Waller had implied he would support an immediate rate hike if core CPI did not decrease. July rate hike probabilities had increased to 42% from 8% one month ago, per CME FedWatch, but may be revised downward following the June CPI report.
Market Reaction
Centralized exchange (CEX) trading volumes rose for the first time in five months in June, with spot volumes climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B
Based on reporting from crypto.news.
