US consumer inflation experienced a sharp rise in June, a development that is raising eyebrows among financial observers. Some analysts are pointing fingers at the tariffs instigated by former US President Trump, which have been imposed on several countries.
The Consumer Price Index (CPI) for June witnessed a 2.7% increment year-on-year, slightly surpassing the forecasted 2.6% increase.
The core CPI, which excludes the volatile sectors such as food and energy, remained consistent with the predicted 2.9%. The month-on-month CPI growth also matched expert estimations at +0.3%.
Reports suggest that the fall in gas prices and a slow-down of inflation in the housing sector were advantageous in the preceding months. However, the situation has pivoted, with Trump’s tariffs starting to show their impact.
Bitcoin’s price displayed an instant response to the release of the data from the US Bureau of Labor Statistics. An initial dip from $117,000 to $116,400 was quickly followed by a recovery back to the original amount.
Although Bitcoin’s price fell by $6,000 from the previous day, it has risen by over $10,000 since the past week, even hitting a new record high of over $123,000.
