According to the latest data from the US Bureau of Labor Statistics, the annual Consumer Price Index (CPI) inflation rate was announced as 2.5 percent in August. This figure was in line with the markets' forecast. Thus, annual inflation in the US fell to the lowest level in the last 3 and a half years. The CPI fell for the fifth consecutive month as of August. Bitcoin, on the other hand, continued its upward movement.
CPI data released in August showed a steady decline in inflation recently, falling to 2.5 percent from 2.9 percent in July and 3.0 percent in June. This figure was in line with analysts' expectations, confirming the ongoing downward trend in inflation. Moreover, the five-month-long downward trend is considered as a positive signal for economic stabilization.
Economists believe that with this development, the Fed may cut the interest rate by 25 basis points for the first time in months at the FOMC meeting next week. This expectation is driving the price of risky assets such as Bitcoin upwards.
Core CPI, which is calculated by excluding volatile items such as food and energy, was announced as 0.3 percent on a monthly basis, against expectations of 0.2 percent. Annual core CPI in the US was announced at 3.2 percent, in line with expectations.
The latest situation in Bitcoin
With the continued decline in inflation, the Bitcoin price rose above $57,000. BTC had retreated to $ 56,100 during the day.