According to the Bureau of Labor Statistics, the Consumer Price Index (CPI), which measures price changes across a wide range of goods and services, increased by 3.0% over the 12 months through June. This figure came in slightly below economists' expectations of a 3.1% rise. On a month-to-month basis, inflation actually decreased by 0.1% in June, marking the first monthly decline since May 2020. This follows a flat reading in May.

The slowdown in the pace of inflation for the fourth month in a row signals progress in the Federal Reserve's efforts to tame inflation. This development has been eagerly awaited by investors, who are hoping that this could pave the way for rate cuts in the near future.

Earlier this week, Federal Reserve Chairman Jerome Powell expressed satisfaction with the inflation slowdown but emphasized that policymakers need more evidence of a downward trend toward the Fed’s 2% target before considering rate cuts.

CME traders had predicted a 65% chance of an initial Fed rate cut in September. However, some analysts, like Valentin Fournier of BRN, are cautious, suggesting that hawkish comments from the Fed could temper market enthusiasm following Thursday's inflation report. Fournier pointed to the strong Personal Consumption Expenditures (PCE) report on June 28 as an example, where the market reacted as if inflation was not decreasing.

Bitcoin (BTC) has rebounded from its recent four-month low, climbing past $59,000 momentarily following the release of CPI figures. However, Bitcoin has failed to stay above $59,000, falling back down to $56,600. It is down 0.8% in the past 24 hours.