According to the US Bureau of Labor Statistics, the Consumer Price Index (CPI) inflation rate fell significantly in August to 2.5%. This falls below the projected 2.6% and ends 40 months of inflation at or above 2.9%. This is the sixth straight month of falling CPI inflation.
August's CPI rate fell from 2.9% in July to 3.0% in June, showing a continued cooling trend. Core CPI, which excludes volatile goods like food and energy, dropped to 3.2%, slightly lower than the projected 3.3%.
Economists believe this pattern will boost the likelihood of a September rate drop, perhaps bringing comfort to markets and investors. The drop in overall and core CPI demonstrates that inflation control measures are working.
Following the CPI data announcement, Bitcoin's price went up to the $56.3K level. The cryptocurrency looks to be about to shatter the $60K resistance mark.
This reduction in inflation indicates a change in the financial sector. If the pattern continues, it may result in a more stable economic outlook and stronger upward tendencies for Bitcoin and other cryptocurrencies.
