- US CPI drops to 2.7% year-over-year, below the expected 2.8%.
- Core CPI rises to 3.1%, signaling persistent inflation pressures.
- Market eyes Fed rate cuts amid US-China trade uncertainties.
The latest US Consumer Price Index (CPI) data, released today by Coin Bureau, has sent ripples through financial markets.
The year-over-year CPI came in at 2.7%, slightly below the anticipated 2.8%, while the core CPI, excluding volatile food and energy prices, held steady at 3.1%, matching expectations but rising from last month’s 2.9%. This data, unveiled at 12:30 UTC, reflects a mixed economic signal as investors weigh the implications for the Federal Reserve’s next moves.
The headline CPI figure of 2.7% suggests inflation is cooling marginally, offering a glimmer of hope for consumers grappling with rising costs. However, the core CPI’s uptick to 3.1% indicates persistent underlying price pressures, a trend underscored by a 2023 National Bureau of Economic Research study that highlights core CPI as a more reliable long-term inflation gauge. This divergence could prompt the Fed to maintain a cautious stance, especially with its 2% inflation target in sight yet elusive.
Market reactions are already underway, with some analysts, like those on X, predicting potential rate cuts if the “soft landing” narrative holds. Others remain bearish, citing the climbing core CPI as a red flag. The timing is critical, as President Trump faces a deadline today to extend a US-China economic cease-fire, adding geopolitical uncertainty to the mix. Trade tensions could amplify the CPI’s impact, influencing global supply chains and commodity prices.
Good CPI (Consumer Price Index) data, released earlier today on August 12, 2025, may signal lower inflation, potentially causing a short-term Bitcoin dump before a pump, as supported by YouHodler’s (2023) analysis linking CPI volatility to crypto market movements, influencing institutional trading strategies.
The prediction of an altcoin bounce within 24 hours reflects current market trends, with Brave New Coin (2025) noting Ethereum-led altcoin surges driven by institutional interest, contrasting with past retail-driven hype, suggesting a shift toward more fundamental value in the crypto ecosystem.
Crypto enthusiasts are also tuning in, with posts suggesting utility projects like $AXOL might ride any market surge. As the focus shifts to the Fed’s September meeting, today’s CPI print sets the stage for heightened volatility.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.