The United States’ newest release on its inflation rate for July has created a celebration reason for many, especially the crypto sector. The Department of Labor published that the July customer price index report (CPI), fell to 8.5%. This was against its last year’s value of 9.1%.
With the report’s release, many people have expressed their recommendations for the Biden Administration and their shock. Some people admitted that they had expected an increase in inflation because of some current factors. Some mentioned the fact that inflation could be triggered by factors such as the Ukraine-Russia war, and an increase in prices for goods.
The CPI report’s great news has been welcomed by Joe Biden, the US president. He stated that July saw zero inflation, and he commented from the White House.
Biden also stated that the approach they have taken to controlling inflation has produced positive results. Therefore, President Biden encouraged Congress and the passage of the inflation Reduction Act. This will allow for an economy that rewards hardwork.
The US has reported negative GDP values for two quarters in the last six months. The high-priced economy also indicated that inflation rose during this period.
Reporters pointed out that the average monthly energy cost savings was 4.6%. This value is not in line with the 2021 report, which showed a 32.9% climbing curve. The trend is steady upwards in the area of food expenditures.
This report showed a 11% increase in July, and 10.9% year-over–year growth. Pundits said that this was the biggest surge since May 1979.
To give motorists a bit of help, gasoline prices dropped by 7.7% per month. But, by 44% it was still higher than that for 2021.
The Uptrend in Crypto Markets was Successful
A new trend is that the cryptocurrency market is seeing positive changes in its value and price. However, crypto has seen a lot of turmoil due to crypto winter and other combinating factors.
The geopolitical environment and macro factors were also very negative. Bitcoin and other major crypto assets saw dramatic price declines in the first half 2022.
Many cryptocurrency prices dropped while we waited for the CPI August report. BTC traded at $23,100 after it fell 4%. After hitting $24,000 on Monday, this abrupt downward movement was caused by it. The drop in Ethereum was below 5%.
The market price of most assets is moving in the upward trend, but they are still making gains. While Bitcoin is at $24,200 and Ethereum has reached $1,900, Ethereum’s price was slightly lower as of this writing.
Featured Image from Phemex. Chart by TradingView.com