U.S. inflation cools to 3.4% in July as bitcoin holds near $64,000

U.S. inflation cooled in July as expected, with the Consumer Price Index rising 0.1% from June, according to data released by the Bureau of Labor Statistics on August 12. The report, which showed annual inflation at 3.4%, matched economists' forecasts and provided a clearer picture of the economic landscape for the Federal Reserve as it considers future interest rate decisions. Bitcoin, which had been trading in a tight range ahead of the data, saw only a muted reaction, gaining about 0.33% to approximately $63,750 following the announcement.

The monthly increase in the CPI reversed a 0.4% decline in June. Shelter costs were the primary driver, accounting for roughly two-thirds of the overall monthly rise with a 0.1% increase. This was partially offset by a 1.5% drop in energy prices, led by cheaper gasoline. Core inflation, which strips out volatile food and energy prices to gauge underlying price pressures, rose 0.2% in July after being flat the previous month. On an annual basis, core prices increased 2.5%, edging down from June's 2.6% reading.

The data arrived at a critical moment for markets, following a weaker-than-expected U.S. employment report that showed the economy...