According to the results of August, annual inflation in the US slowed from 2.9% to 2.5%. The indicator coincided with market expectations.
Bitcoin BTCUSD has shown virtually no reaction to the slowdown in inflation in the US.
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US releases CPI data for August
In August, the consumer price index (CPI) showed a further decline. Inflation dynamics coincided with market expectations.
Excluding food and energy prices, the index rose 0.3% month-on-month and 3.2% year-on-year, up from 0.2% and 3.2% in July.
Analysts had expected core inflation to increase by 0.2%. According to Reuters, the stability of this indicator may prevent the Federal Reserve System (FRS) from cutting the key rate by 50 basis points (bp) at once next week. The meeting is scheduled for September 18.
According to CME FedWatch, 71% of traders expect the agency to cut rates by 25 bps. The probability of a 50 bps cut has fallen to 29%.
âSome market watchers are hoping for an aggressive 0.5% rate cut at the next Fed meeting in September, but that could lead to inflation falling too quickly, which would likely be consistent with a recession. A more gradual rate cut would hedge against that and historically has been good for equities. Itâs been a long cycle, but in this case, slow and steady cuts should win the race,â Richard Flynn, managing director at Charles Schwab UK, said in a Bloomberg commentary.
The price of Bitcoin did not react to the publication of the report. At the time of writing, BTC is trading at $56,747, having fallen by 0.6% over the past 24 hours.
The quotes of the second largest cryptocurrency by capitalization â Ethereum ETHUSD â have also remained almost unchanged. The asset price is currently hovering around $2,333.
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