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As the economy heats up, financial markets have been obsessed with inflation data, from equities to bonds to cryptocurrency. The Consumer Price Index in the United States increased by 5.4 percent in the 12 months ending in June, surpassing experts’ expectations of a 4.9 percent gain.

The core CPI, which excludes food and energy costs, increased 4.5 percent year over year, above experts’ estimates of a 4% gain. Consumer prices rose 0.9 percent month over month, more than the predicted 0.5 percent and faster than the 0.6 percent rate seen in May. As a result, the index gained 0.9 percent for the month, excluding food and energy.

The CPI data, issued Tuesday by the Bureau of Labor Statistics (BLS) of the United States Department of Labor, depicts an economy dealing with supply restrictions while striving to meet rising demand as the country reopens, with company lockdowns lifted and coronavirus vaccines reaching more people.

According to the Labor Department, this was the fastest one-month gain since June 2008.

“Many of the same indexes continued to increase, including used cars and trucks, new vehicles, airline fares, and apparel,” the Labor Department wrote. “The index for medical care and the index for household furnishings and operations were among the few major component indexes which decreased in June.”

For some cryptocurrency investors, the CPI data is especially relevant since bitcoin (BTC, -3.5 percent) is seen as a hedge against inflation and monetary debasement.

  • The used vehicle and truck index continued to increase significantly in June, at 10.5 percent.
  • By 0.8 percent, the food index has risen.
  • The energy index rose 1.5 percent, while the gasoline index rose 2.5 percent.

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