U.S. June CPI fell 0.4%, likely cooling move toward Fed rate hikes
U.S. June CPI data showed a 0.4% decline, coming in lower than expected and cooling inflation concerns. This economic data has led to a rise in Bitcoin and stock futures while bond yields have fallen.
Why it matters
The CPI report is a critical indicator for Federal Reserve interest rate policy, significantly impacting global financial markets and investor sentiment.
The Consumer Price Index (CPI) decline 0.4% in June versus economist forecasts for a decline of 0.1% and May's sharp rise of 0.5%.
On a year-over-year basis, CPI was up 3.5% versus forecasts for 3.8% and 4.2% in May.
Core CPI, which excludes food and energy, was flat in June, versus forecasts of 0.2% and May’s 0.2% increase. On a year-over-year basis, core CPI rose 2.6% against expectations for 2.8% and 2.9% in May.
Bitcoin added to earlier gains following the soft numbers, rising to $63,400, up about 2% over the past 24 hours. U.S. stock index futures also rose, the Nasdaq 100 up 1.25%.
Bond yields fell sharply, the U.S. 2-year Treasury down seven basis points to 4.19% and the 10-year down five basis points to 4.56%.
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