The latest data from the U.S. Bureau of Labor Statistics reveals that June’s Consumer Price Index (CPI) inflation rate has fallen to 3.0%, lowering expectations of 3.1%. This drop marks the 39th consecutive month with inflation at or above 3% and the third straight month of declining CPI inflation, signaling potential shifts in the economic landscape.
June CPI Inflation Drop To 3%
The U.S. CPI inflation rate eased to 3% in June, down from 3.3% in the previous month. This decline indicates a cooling trend in inflation over the past year.
However, on a month-over-month basis, the CPI inflation rate showed a minor increase of 0.1%, following a period of no change from April to May. This slight rise was in line with market estimates and did not come as a surprise. The cooling inflation on a 12-month basis has generated positive sentiment in the broader financial markets, including the cryptocurrency sector.
Core CPI Inflation Fell To 3.3%
Alongside the overall CPI, the core CPI inflation rate, which excludes volatile items like food and energy, also saw a reduction. The core CPI inflation fell to 3.3%, compared to the expected 3.4%. This further highlights the broad-based nature of the recent decline in inflation rates.
Despite the recent declines, it’s important to note that this marks the 39th consecutive month with inflation at or above 3%. This prolonged period of elevated inflation has been a major point of concern for economists, policymakers, and consumers alike, impacting everything from purchasing power to monetary policy decisions.
A Trend of Declining Inflation
June’s data marks the third straight month of falling CPI inflation. This consistent downward trend may indicate that previous measures to control inflation are beginning to take effect. If this trend continues, it could signal a more stable economic environment in the coming months.
Bitcoin Price Rally
After the release of the CPI data, Bitcoin’s price surged by 2%, currently trading at $58,859. The bullish sentiment is high, with QCP noting that BTC futures swap points bounced off a low of 10%. This rally happened as traders closed their short futures positions to take profits on their basis trades.
This bullish environment suggests that yields could rise even higher, potentially exceeding 15%. Given the current positive market momentum, Bitcoin could reach $60,000 soon.
Read Also: Do Kwon’s Wife Scores Legal Victory: Seoul Court Upholds Her Property Rights Amid Terra Luna Probe
