The latest Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics reveals that inflation eased to 2.5% in August, the slowest rate since 2021. Core CPI, which excludes the volatile food and energy sectors, saw a modest increase of 0.3% for the month.
Market Reactions: Stocks, Bitcoin, and Gold Remain Steady
The Bureau of Labor Statistics (BLS) report, released on Wednesday, highlighted that
“over the last 12 months, the all-items index increased 2.5 percent before seasonal adjustment.” The report also noted that “the index for all items less food and energy rose 0.3 percent in August, following a 0.2 percent increase in the previous month.”
In response to the report, major stock indices showed little change. The Nasdaq saw a slight uptick of nearly one percentage point, while the S&P 500 registered minor gains. Conversely, the Dow and Russell 2000 experienced slight declines.
Bitcoin’s price remained relatively stable, down 0.4% over the last 24 hours, with a minor dip following the Harris-Trump debate.
Despite this small drop, Bitcoin attempted to maintain the $57,000 range at 9:15 a.m. EDT on Wednesday. The broader cryptocurrency market experienced a 1.2% decline, with global trade volume decreasing by 5.3% from Tuesday. Ethereum also had a subdued trading day.
- Bitcoin is trading lower at $56,446 per coin.
- Ether down 0.9% to $2,318 per coin by 9:35 a.m.
- Precious metals displayed mixed results on September 11.
- Gold fell by 0.4% by 9:15 a.m.
- EDT, trading at $2,510 per ounce.
- Silver saw a gain of 0.57%, reaching $28.58 per ounce.
The CPI figures are approaching the U.S. Federal Reserve’s 2% target rate, potentially heightening expectations for a rate cut on September 18. Currently, there is an 83% chance of a 25 basis points reduction, while a 50 basis points cut stands at 17%.
