The increase in inflation in the United States in June was higher than expected: 1.3%, leading to an annual increase of 9.1%.
- Inflation in the US rose 1.3%, according to official statistics
- This means an annual inflation of 9.1%, the highest in 41 years
- Energy was the item that had the greatest increase
- Bitcoin and the crypto market reacted lower
The United States Bureau of Labor Statistics today gave the long-awaited official report on inflation last month. This statistical report serves as a guide, not only within that country, but -since the dollar is the world reference currency- it will affect prices throughout the world and in all sectors, including cryptocurrencies, whose answer will surely be seen in matter of hours.
According to the report, the Consumer Price Index for All Urban Consumers (CPI-U) it rose 1.3 percent in June, after rising 1.0 percent in May. Over the last 12 months, the index for all items increased 9.1 percent.
Although the increase was widespread, the indexes for gasoline and energy, housing and food experienced the largest increases. The energy index rose 7.5 percent for the month, with the gasoline index rising 11.2 percent. Likewise, the food index increased 1.0 percent in June. In addition, the price increase index for new cars was 0.7% and for used cars 1.6%.
Here you can see the main figures and increases:
Inflation in June is the highest since 1981
The body indicates:While nearly all of the major component indices increased for the month, the biggest contributors were housing, used cars and trucks, health care, motor vehicle insurance, and new vehicle indices. Rates for motor vehicle repair, apparel, furniture and home operations, and recreation also increased in June. The component indices that fell in June were accommodation away from home and airfares.
Likewise, the annual index between June 2021 and 2022 increased by 9.1 percent. This is the highest annual indicator of inflation since the highest 12-month index for the period ending in November 1981, as he reveals himself Bureau of Labor Statistics. The index for all items less food and energy rose 5.9 percent in the past 12 months. Also, the energy index rose 41.6 percent in the last year, the largest 12-month increase since the period ending April 1980. The food index increased 10.4 percent from June 2021 to June 2022, the largest 12-month increase since the period ending February 1981.
What some analysts say
Coindesk interviewed several analysts. The media assures that an inflation figure higher than expected, in particular for the core CPI, “would validate the Fed’s strategy of combating price pressures with aggressive rate hikes and a balance sheet sell-off, reinforcing the dollar’s rally and creating renewed selling pressure for risk assets, including Bitcoin”.
That medium shows how some observers expect the CPI to influence Bitcoin.
Matthew Dibb, COO and co-founder ofeStack Fundsbased in Singapore, told CoinDesk: “We think it’s largely priced in, but any deviation from the forecast will bring a lot of volatility. Bitcoin has been trading strongly ‘risk off’ since Sunday in anticipation of this week’s macro news and is closing in on recent support. If a print breaks above 8.8%, BTC is likely to get closer to the $18,000 handle in the near term.”
For his part, John Kicklighter, chief strategist of DailyFXsaid: “Wednesday’s CPI is a catalyst capable of getting markets moving again, but it is a higher bar to build broader traction on ‘risk trends’ that will push Bitcoin and cryptocurrencies lower along with other assets traditional speculative. On the other hand, another extension for the dollar trading between 20-35 year highs against its larger counterparts (euro, yen and pound) could certainly strangle this leading alternative to fiat money.”
Vetle Lunde, analyst at Arcane Researchnoted in the weekly report: “Be prepared for volatility after Wednesday’s CPI release at 08:30 ET. Upside inflation surprises lead to higher expectations of further monetary policy tightening by the Federal Reserves.”
How has the crypto market reacted?
Although the day is just beginning and the information was known half an hour ago, both Bitcoin as major cryptocurrencies reacted lower. Bitcoin fell 0.36% in the last hour, which is reflected in a drop of 3.77% compared to yesterday’s price. Its price is now, at 9:00 am, USD $19,134.03, according to the index of CryptoMarkets.
Other important falls were those of Ethereum, ETHat 4.2%, Cardan, ADA, in 5.24%, and sunshine, sun, at 4.99%, just to name a few of the top ten.
Report of DailyBitcoin
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