U.S. June CPI Rises in Line, Bitcoin Bounces Back: Fed Rate Cut Looms

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U.S. June CPI Rose an In Line 0.3%; Core Rate Slightly Better Than Hoped at 0.2%

What to know:

  • June headline CPI was higher by an in line 0.3%, while the core rate rose a bit less than expected 0.2%.
  • The news could further the idea that the Fed might resume rate cuts in September.
  • Sharply lower ahead of the number, bitcoin rose modestly following the data.

In this article

BTCBTC$117,784.52◢3.20%

The inflation rate in the United States increased slightly in June, largely as anticipated, potentially paving the way for another interest rate reduction by the Federal Reserve as early as September.

Last month saw a 0.3% increase in the Consumer Price Index (CPI), as anticipated by economists, while it was slightly lower at 0.1% in May. Compared to the same period last year, CPI experienced a 2.7% rise, matching the projected figure and slightly higher than the 2.4% growth seen in May.

In June, the core Consumer Price Index (CPI) increased by 0.2%, contrary to the forecasted 0.3% growth and a slight rise of 0.1% in May. On an annual basis, the core CPI showed a rise of 2.9%, higher than the projected 3.0% and a previous increase of 2.8% in May. In simpler terms, the core CPI, which excludes food and energy costs, saw a smaller monthly increase but a larger yearly increase compared to expectations for June.

Amid a significant drop since reaching approximately $124,000 less than 24 hours ago, the value of Bitcoin has decreased.

gained a bit back to $117,300 just following the release of the data.

Traditional market analysis reveals that U.S. stock index futures are experiencing a slight increase in their gains, and the S&P 500 is up by 0.4%. Meanwhile, the 10-year Treasury yield has slightly decreased by two basis points to 4.41%.

The recently acquired information is significant as investors keep an eye out for indications that inflation might be decreasing sufficiently for the Federal Reserve to potentially lower interest rates in the remaining months of this year. However, it appears that not all members of the Fed, including Chair Jerome Powell and other central bank decision-makers, are in agreement with the idea of a rate cut, as at least two have advocated for one following the Federal Reserve’s meeting in late July.

The latest development has made the Fed’s upcoming meeting in September a strong contender for when they might resume reducing interest rates again. Before today’s inflation figures came out, there was approximately a 62% chance of such a move happening in September, as suggested by CME FedWatch.

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2025-07-15 16:40