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US CPI Inflation Likely To Spike
The US Consumer Price Index (CPI) inflation for July, which is scheduled to be released by the Labor Department on Wednesday, August 14, is expected to spike. This has fueled discussions about whether it will hinder the US Federal Reserve’s rate cut plans at their upcoming meeting. According to market estimates, inflation is expected to rise 0.2%, following a drop of -0.1% in the prior month.
US CPI Inflation Likely To Spike
The global financial market, including the crypto sector, is eagerly waiting for the upcoming US CPI inflation data next week. The data will provide cues on the current inflationary pressures, which in turn could impact the US Federal Reserve’s decision with their policy rate plans.
According to Wall Street estimates, the July inflation is expected to come in at 0.2%, following a drop of 0.1% in the previous month. On a year-over-year (YoY) basis, the inflation is likely to stay at 3%, unchanged from the prior month’s figure.
US PPI In Focus
Another key metric, the US PPI inflation figures, is also scheduled for next week. The Producer Price Index (PPI) is another figure after the US CPI that the US Federal Reserve considers while deciding on its policy rate plans.
According to market estimates, the US PPI inflation is expected to remain unchanged at 0.2% in July. However, the Core PPI is expected to come in at 0.2% for the month, after remaining unchanged in the prior month.
Crypto Market Braces For Impact
The global crypto market has witnessed tumultuous trading lately on the heels of global economic concerns. The Bank of Japan’s move to raise its interest rate has weighed on the market sentiment, triggering a massive selloff in the global stocks and crypto market. However, the BOJ’s consideration of a dovish approach moving forward has allayed some concerns.
In addition, the recent woes over the US economy heading towards a recession have also dampened the market sentiment. Despite that, the market seems to be recovering lately following a massive decline.
For context, BTC price dropped to as low as $49,100 level this week, before noting a rebound to $62,000 mark. In addition, a recent Bitcoin price analysis indicates that the crypto could hit $64,000 soon, following which it could continue its run toward the $70K mark.
Conclusion
In conclusion, the upcoming US CPI inflation data is expected to have a significant impact on the global financial market, including the crypto sector. The market is bracing for a potential spike in inflation, which could impact the US Federal Reserve’s rate cut plans. Meanwhile, the crypto market is also recovering from a recent decline, with some analysts predicting a potential surge in Bitcoin price.
FAQs
Q: What is the expected inflation rate for July?
A: According to market estimates, the July inflation is expected to come in at 0.2%, following a drop of 0.1% in the previous month.
Q: How will the US Federal Reserve’s rate cut plans be impacted by the upcoming US CPI inflation data?
A: The data will provide cues on the current inflationary pressures, which in turn could impact the US Federal Reserve’s decision with their policy rate plans.
Q: What is the current market sentiment on the crypto market?
A: The global crypto market has witnessed tumultuous trading lately on the heels of global economic concerns. However, the market seems to be recovering lately following a massive decline.
Q: What is the expected impact of the Bank of Japan’s interest rate hike on the crypto market?
A: The move has weighed on the market sentiment, triggering a massive selloff in the global stocks and crypto market. However, the BOJ’s consideration of a dovish approach moving forward has allayed some concerns.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
