After falling 0.1% last month, market analysts predict inflation will climb 0.2% this time around.
The US Federal Reserve’s policy rate plans might be influenced by the statistics.
On Wednesday, August 14, the US Labor Department is slated to announce the Consumer Price Index (CPI) for July, which is anticipated to show a significant increase in inflation. Because of this, many are wondering whether the US Federal Reserve will be able to implement its plans to decrease interest rates at their next meeting. After falling 0.1% last month, market analysts predict inflation will climb 0.2% this time around.
The cryptocurrency industry and the rest of the global financial market are waiting with bated breath for next week’s US consumer price index inflation statistics. The US Federal Reserve’s policy rate plans might be influenced by the statistics. Which will provide clues about the present inflationary pressures.
High Volatility Anticipated
Moreover, Wall Street forecasts that inflation will come in at 0.2% in July, after a 0.1% decline in June. This month’s inflation rate of 3% is anticipated to be maintained on a year-over-year (YoY) basis.
At the same time, economists are projecting that Core CPI inflation, which does not include energy and food costs, would rise to 0.2% from 0.1% in June. Core inflation is expected to show a cooling rate of 3.2% in July. From 3.3% in June, but, when looking at it on a year-on-year basis.
Market players are feeling pessimistic due to the expected increase in the monthly US CPI inflation number. Even a little increase in the amount is unlikely to affect the central bank’s decision. This is according to a slew of market analysts who have dismissed the worries. High volatility in the crypto sector is expected this week as investors brace for the upcoming data.
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