Inflation Surges, Threatening Cheap Money and Bitcoin Profits

US consumer prices rose 0.4% in August from July, and 3.4% over the past year, according to data released on Thursday.

The Consumer Price Index (CPI) increase was driven by energy prices, which jumped 3.9% last month and accounted for more than a third of the monthly CPI increase.

Shelter costs also rose 0.3%, while producer prices increased 5.4% over the past year.

The higher inflation readings give the Federal Reserve another reason to be cautious about lowering interest rates, which could make it harder for Bitcoin investors to earn a profit on their holdings.

Some of the data was more reassuring, with services prices rising just 0.1%, and the core CPI measure excluding food and energy slowing to 2.4% from 2.5% over the past year.