US Inflation Jumps More than Expected in June; Bitcoin & Ethereum Slide

cryptonews.com:

Annual inflation in the US hit 9.1% in June, or more than what analysts had expected, and up from 8.6% in May. It reached the highest level in over 40 years. (This is a developing story and is being constantly updated).

In a month, prices jumped 1.3%, also more than expected. The so-called annual Core-CPI (consumer price index) – which excludes prices of food and energy - stood at 5.9%.

It's a "further blow to economic and social well-being. Highlights Fed’s worst policy mistakes in decades," Mohamed A. El-Erian, President of Queen’s College at Cambridge University, reacted.

Right after the announcement, bitcoin (BTC) dropped from USD 19,921 to USD 19,417 (at 12:39 pm UTC), while ethereum (ETH) moved from USD 1,090 to USD USD 1,053.

According to a Bloomberg estimate, the headline inflation number for June was expected to come in at 8.8% annually, while the so-called Core-CPI (consumer price index) – which excludes prices of food and energy – was expected to be 5.7%, down from 6% one month earlier.

The number was estimated to come in high after White House spokesperson Karine Jean-Pierre during a press conference on Monday said she expects inflation to be “highly elevated.”

At the same time, the White House took the opportunity to downplay the importance of the number, saying it is “backwards-looking” and “already out of date.” Among other things, fuel prices in the US have dropped to an average of USD 4.63 a gallon, down from over USD 5 a gallon a month ago.

Ahead of the release of the inflation report, Chris Weston, head of research at the forex and crypto broker Pepperstone, wrote in a note cited by Bloomberg that a reading for headline inflation below 8.5% could lead to a scenario where the US dollar “drops universally” and