**🚨 Latest Update on US CPI and Bitcoin Market 🚨**
**US CPI**: In June, the US CPI decreased by 0.1% compared to May, now around 3%, marking the first decline in over four years. This drop provides strong motivation for the Federal Reserve to consider lowering interest rates in the coming months.
**Core CPI**: Core CPI, excluding energy and food prices, rose 0.1% from the previous month and 3.3% year-over-year, the lowest increase since April 2021. Gasoline prices fell 3.8%, while food and housing costs increased by 0.2%. Housing costs, making up about one-third of the CPI, showed a slower increase, which is a positive sign.
**Expert Insight**: Chris Larkin of E-Trade believes the June inflation data brings the Fed closer to cutting rates by September. If inflation numbers don't surge, a rate cut seems likely.
**Other Factors**: Energy prices dropped, housing costs rose slightly, and used car prices fell by 1.5% in June, down 10.1% from last year. This sector had significantly contributed to early 2021 inflation.
**Labor Market**: The easing inflation implies a 0.4% monthly increase in real average hourly earnings, despite only a 0.8% rise from a year ago. The Fed remains committed to a 2% inflation target, but the latest data shows prices moving in the right direction.
**Market Reaction**: Following the CPI report, traders anticipate a Fed rate cut by September. Seema Shah of Principal Asset Management states the low core CPI increase since 2021 boosts confidence in further rate cuts this year. CME Group's FedWatch tool indicates a potential 0.25% rate cut this year, with traders expecting at least one more cut by year-end and a 40% chance of a third cut in December.
**Unemployment Claims**: Weekly jobless claims dropped to 220,000, the lowest since June 1st, down by 17,000 from the previous week.
**Sources**: CNBC
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