U.S. consumer inflation met expectations in July, with both headline and core CPI readings coming in as forecast. Bitcoin stayed near $64,000, while Treasury yields moved lower.
The data provided little reason for markets to significantly alter their expectations for the Federal Reserve’s next interest-rate decision.
Headline CPI rose 0.1% in July from June, matching the consensus forecast and recovering from June’s 0.4% monthly decline.
On an annual basis, inflation increased 3.4%, meeting expectations and slowing slightly from June’s 3.5% reading.
Core CPI, which removes food and energy costs, increased 0.2% from the previous month, matching both forecasts and June’s result. The annual core inflation rate came in at 2.5%, also meeting expectations and easing from 2.6% in June.
Bitcoin briefly slipped from roughly $64,400 to $64,080 immediately after the figures were released before stabilizing. The cryptocurrency remained largely unchanged over the previous 24 hours, while Nasdaq 100 futures gained 0.7%.
Treasury yields remained lower after weakening ahead of the inflation report. The two-year yield stood at 4.19%, down 3.6 basis points, while the 10-year yield fell three basis points to 4.66%.
The July CPI figures drew increased attention after a disappointing U.S. employment report showed the economy unexpectedly lost 23,000 jobs during the month.
Market expectations for a September Fed rate hike eased following the data. The CME FedWatch Tool showed a 44% probability of an increase at the September meeting, down from 48% before the CPI release and 54% a week earlier.
