The latest release from the US on inflation for the month of July is cause for celebration for many, especially the crypto sector. According to the Ministry of Labour PublishingThe July CPI report fell to 8.5%. This was against last year’s value of 9.1%.
With the release of the report, many people expressed their recommendations to the Biden administration and were shocked. Some admitted that they expected inflation to rise due to some of the factors prevailing at the moment. They noted that the ongoing Ukrainian-Russian war and an increase in commodity prices are expected to play a role.
US President Joe Biden responded to the wonderful news of the CPI report. Commenting from the White House, he confirmed that news shows the economy was inflated at zero percent for the month of July.
President Biden also stated that their approach to controlling inflation is yielding positive results. Hence, he encouraged Congress to pass the Inflation Reduction Act. This will help build an economy that rewards hard work.
In the past six months, the United States has recorded a negative GDP value for two quarters of the year. The rate of inflation also increased during this period, as evidenced by the rise in prices in the economy.
The report indicated a decrease in the monthly energy cost by 4.6%. The value contrasts with the 2021 value, which gave an upward curve of 32.9%. In terms of food expenditures, there is a continuing upward trend.
The report recorded an increase of 11% for the month of July and 10.9% year on year. Critics reported that this value represented the highest increase since May 1979.
Gasoline prices are down 7.7% per month to give drivers a little help. However, it remains 44% above the value for 2021.
The cryptocurrency market has followed an upward trend
In a new development, the cryptocurrency market is making positive progress in price and value. However, the crypto space has been in disarray due to the impact of the crypto winter and other plus factors.
In addition, the geopolitical climate and overall influences were completely unfavorable. As a result, bitcoin and most crypto assets experienced a sharp price decline during the first half of 2022.
While anticipating the July CPI report, many cryptocurrencies fell on August 9. For its part, BTC fell 4% to trade at $23,100. It was a sudden bearish move after it reached the $24,000 level as of Monday. For Ethereum, the decline is below 5%.
But market prices rebound as most assets move in an upward direction. For example, while the price of Bitcoin has risen above $24,200, Ethereum has slightly increased below $1,900 at the time of writing.
Featured image from Phemex, Chart from TradingView.com