US August CPI Matches Forecast at 3.4% Year-on-Year Rise

The US Labor Department announced that the August Consumer Price Index (CPI) rose 3.4% compared to the same month last year, meeting market forecasts of 3.4%. On a monthly basis, CPI increased by 0.4%, aligning with expectations.

Core CPI, excluding volatile food and energy prices, rose 2.4% year-over-year, also matching the forecasted figure. Cryptocurrencies, classified as risk assets, tend to react sensitively to CPI data, which influences Federal Reserve interest rate decisions. A CPI above forecasts could weaken expectations for a rate cut, while a figure below may signal slowing inflation and increase anticipation of lower rates. Risk assets generally rise when there is heightened expectation of liquidity expansion due to potential rate cuts.