The U.S. Consumer Price Index (CPI) rose 0.2% in August, meeting expectations. However, the core CPI rate, which excludes volatile food and energy costs, increased 0.3%, faster than the forecast 0.2%.

The higher-than-expected core inflation rate is likely to lead the Federal Reserve to raise interest rates by 25 basis points next week, rather than the 50 basis points some had anticipated.

In response to the inflation report, the price of bitcoin initially slipped, now trading around $56,500, down 1.5% over the past 24 hours. U.S. stock index futures also fell slightly on the news.

The stubborn persistence of core inflation reflected in the report is likely to solidify expectations of the Fed moving by the lower 25 basis point amount next week, rather than a more aggressive 50 basis point hike.

Source: https://www.coindesk.com/markets/2024/09/11/us-core-inflation-rose-03-in-august-faster-than-anticipated/

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