Crypto
US Inflation Rises Again, Leaving Bitcoin Traders in Expensive Dilemma
The US Consumer Price Index (CPI) rose by 0.4% in August, faster than the 0.1% increase seen in July. This news comes as a blow to hopes of cheap money and may leave Bitcoin investors facing expensive borrowing costs.
The CPI annual inflation rate remained at 3.4%, while core inflation, which excludes food and energy prices, rose from 2.5% to 2.4%. The producer price report (PPI) showed a 0.4% monthly increase and a 5.4% annual gain.
The PPI increase was largely driven by energy prices, which rose 4.2%. This concentration of energy costs has led policymakers to look beyond the headline numbers when assessing whether inflation will persist.