U.S. consumer prices rose 3.4% in July, matching economist expectations and keeping Federal Reserve interest rate policy outlooks stable as Treasury yields declined and bitcoin held steady.
Key Points
- The Consumer Price Index increased 0.1% month-over-month and 3.4% year-over-year in July.
- Core CPI, excluding volatile food and energy costs, rose 0.2% monthly and 2.5% annually.
- Bitcoin maintained a price near $64,000 following the release of the inflation data.
- The two-year Treasury yield fell 3.6 basis points to 4.19%, while the 10-year yield dropped to 4.66%.
- Market participants currently estimate a 44% probability of a Federal Reserve interest rate hike in September.