US Inflation Slows in July, Bitcoin and Ethereum Surge 2023

The U.S. Consumer Price Index (CPI) in July saw an annual increase of 8.5 percent, or less than expected, after peaking at 9.1 percent in June, indicating a peak in inflation and a possible slowdown.

Economists polled by Bloomberg estimated that inflation would rise 8.7 percent year-on-year in July this year and 0.2 percent higher than in June.

Both Bitcoin (BTC) and Ethereum (ETH) jumped immediately after the announcement. Bitcoin rallied from $23,100 and briefly touched above $24,000, extending its daily gain to 3%, while Ethereum rallied from $1,710 to $1,820, extending its daily gain to 7%. Several altcoins also turned green.

Inflation was expected to moderate in July as gasoline prices fell across the country. However, it is still near 40-year highs.

Prior to the announcement, Moody’s Analytics Chief Economist Mark Zandi stated that:

“I think the 9.1% inflation rate we experienced in June will be a peak, much of it depends on oil prices.”

Investors are looking for clues as to how much the Federal Reserve might raise interest rates at its September meeting.

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