Crypto Prices Jump as Inflation Takes a Breather

Crypto markets saw a boost on Tuesday after the latest U. S. inflation numbers came in lower than expected. The Consumer Price Index (CPI), which measures the cost of everyday goods and services, rose by 2. 7% over the past year. This was a bit less than economists were predicting, showing that inflation is starting to cool down. Bitcoin and Ethereum, two of the biggest cryptocurrencies, both went up in price. Bitcoin reached $118, 000, while Ethereum climbed to $4, 300. However, not all cryptocurrencies had a good day—Solana dropped by 1. 7%. The inflation report wasn’t all good news. When you take out the prices of food and energy, which can be very unpredictable, the cost of other goods and services still went up by 3. 1% over the year. This was a bit higher than expected and shows that some price pressures are still around. Experts say that housing costs have been a big part of why inflation has stayed high, but there are signs that this might be slowing down. Russell Price, an economist, said that the latest report was a positive sign for inflation in the near future, even though there might be some small increases because of new tariffs. The Federal Reserve, which controls interest rates in the U. S. , has been careful about cutting rates this year. They’re worried that President Trump’s new tariffs on imports could push prices up even more. But after a recent jobs report showed weaker-than-expected numbers, the chances of a rate cut in September went up to 82. 5%. Some Fed officials, like Michelle Bowman, have already voted for a rate cut because they see weakness in the job market. She believes that the impact of tariffs on prices will only be temporary and that the Fed should focus on bringing inflation back down to its 2% target. Experts are divided on whether Trump’s tariffs will have a big impact on inflation. Some think that companies have been stockpiling goods to avoid the tariffs, which has delayed any price increases. But as these stockpiles run out, prices for consumers might start to go up.