Inflation Holds Steady, Fed Hike Odds Remain a Coin Flip

The latest US inflation data shows that prices have held steady at 3.4% year-over-year, matching Wall Street forecasts. The core inflation rate, which excludes volatile food and energy costs, also came in as expected at 2.5%. This in-line report keeps the September Federal Reserve rate hike a live coin flip for Bitcoin (BTC) traders.

The Bureau of Labor Statistics published the data on Wednesday, showing that headline prices rose 0.1% on the month, reversing June's 0.4% decline. The annual rate eased from 3.5% to 3.4%. Core CPI climbed 0.2% in July and 2.5% from a year earlier.

The result even disappointed the optimists, as traders on Kalshi had leaned toward a softer 3.3% print before the release. The odds of a September hold now split almost evenly with those for a quarter-point hike at 54.1% and 45.9%, respectively.