- The US Bureau of Labor Statistics will release the US Consumer Price Index (CPI) data for August 2023 on Wednesday, September 13.
- Financial markets are moving in anticipation that the US Federal Reserve will maintain its stance of keeping interest rates high in the context of strong economic data.
- The bureau had previously reported that the CPI for all urban consumers in July 2023 increased by 0.2% monthly, seasonally adjusted, and increased by 3.2% unadjusted over the last 12 months.
Today, US inflation data will be released, and this inflation is of critical importance for the Fed’s interest rate decision; it’s also important for Bitcoin!
Eyes Turn to US Inflation Data
The US Bureau of Labor Statistics will release the US Consumer Price Index (CPI) data for August 2023 on Wednesday, September 13. Previously, positive inflation data reports had boosted Bitcoin’s price.
The CPI is an important index that measures the change in prices for a specific period. This data measures the increase or decrease in prices paid monthly for consumer goods and services.
Financial markets are moving in anticipation that the US Federal Reserve will maintain its stance of keeping interest rates high in the context of strong economic data. Therefore, investors will closely watch the release of August CPI data to assess the central bank’s upcoming decision during the Federal Open Market Committee (FOMC) meeting scheduled for September 19-20, 2023.
The bureau had previously reported that the CPI for all urban consumers in July 2023 increased by 0.2% monthly, seasonally adjusted, and increased by 3.2% unadjusted over the last 12 months. By comparison, the broad market expectation for August is that the CPI will increase by 0.6%, and the headline inflation for August is expected to be approximately 3.6% on an annual basis.
Steady Interest Rates?
CME FedWatch, which measures the likelihood of the Fed changing its federal target interest rate in future FOMC meetings, shows a 93% probability of interest rates remaining steady at the 5.25-5.50% level in September and only a 56.4% probability of interest rates remaining steady at the November meeting.
Meanwhile, if inflation data comes out as expected, whether Bitcoin’s price will see a rally following the release of CPI data remains to be observed. As previously reported by COINOTAG, the neckline resistance for the BTC price is set at $28,168.
