The Fed preferred inflation index rises 2.6% in July, in line with expectations

By Hannah Pérez

PCE reading in the US showed a slight increase of 0.2% in July, aligning with expectations and favoring the idea of ​​an interest rate cut. Bitcoin late to react but is already recovering on the USD $ 110,500.

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• PCE inflation in the USA. Upload 0.2% month by month in July, in line with expectations.
• The soft reading of the favorite Fed index favors the perspective of a rate cut.
• The cryptocurrency market showed anxiety prior to the publication of the data.
• Bitcoin takes to react but is already recovering on the USD $ 110,500.

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Inflation in the United States increased slightly in July, according to the measure of inflation preferred by the Federal Reserve (FED), which could favor the argument for an upcoming cut of interest rates in September.

The Personal Consumer Expenses Price Index (PCE) increased 0.2% in July compared to the previous month, according to data published today by the US Economic Analysis Office. (BEA).

Excluding food and energy, the underlying PCE grew by 0.3% monthly. In annual terms, the PCE General advanced 2.6% since July 2024, while the underlying registered a 2.9% increase, according to the official report.

The PCE measures the changes in the prices of goods and services consumed by American homes, being a key indicator for monetary policy decisions of the Central Bank. This moderate increase in July is in line with the expectations of analysts, which suggests controlled inflation, although basic services and salary trends remain under review.

Cryptocurrency market feels anxiety

Before the publication of the data, the financial markets showed anxiety, with remarkable volatility among cryptocurrencies. The price of Bitcoin (BTC) fell below the USD $ 110,000 during the night (ET time), before a modest recovery on Friday morning. At the time of writing, BTC is negotiated around USD $ 110,500, 2.5% less in the last 24 hours and 10.8% below its historical maximum of USD $ 124,000 in mid -August, according to data from Coingcko.

“This PCE publication will shape the future path of flexibility of the Fed, instead of the September decision itself“they pointed out analysts of Bitunix In an email cited by COINDESK.

“If the data meet or are below expectations, the feeling of risk can be maintained; But if they are significantly higher, the orientation of the Fed could lean towards a posture of ‘one and wait’. Investors must focus on basic services, salary trends, treasure bond yields“

The bulletin of COINDESK He stressed that softer inflation could benefit especially to the recent rebound of Ethereum (ETH), largely driven by a renewed institutional appetite. ETH -stock exchange (ETF) funds have been seeing record flows, with net tickets for more than one billion dollars this week, according to Sosovaluealmost double that ETFs Bitcoin.

Ether It is negotiated slightly above USD $ 4,400 at the end of the edition, a 4.2% drop in the day and 11% below its recently conquered historical maximum of USD $ 4,950.

The PCE data, when aligning with expectations, reinforce the probability that the Fed maintains its gradual monetary flexibility approach, possibly with feat cuts in September, something that investors have been waiting widely because it can increase the appetite for risk assets, potentially injecting liquidity to the markets.

The report also highlighted a 0.4% increase in personal and 0.5% income in personal consumption expenses, driven by an increase in compensation, especially in salaries in the services sector. The personal savings rate stood at 4.4% in July.

The next update of PCE data, together with August estimates, will be published on September 26, according to the BEA.

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Article written with the help of AI, edited by Diariobitcoin

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