Inflation in the US in August came in at 8.3% year-on-year compared with an estimated 8.1%, Bloomberg reported on Tuesday, citing data from the US Labor Department. The agency added that the consumer price index increased by 0.1% compared to July.
After the announcement, the price of bitcoin fell by nearly $1,000, standing at $21,758 per unit, according to data de Bloomberg Markets.
Bloomberg notes that due to rising inflation, the US central bank, the Federal Reserve, may raise short-term interest rates by 0.75 percentage points for the third time in a row.
The US Federal Reserve has already raised key rates in May and June amid its efforts to stem a historic rebound in inflation. However, forecasts suggest the institution will raise the benchmark rate to 3.4% by the end of this year and to 3.8% by 2023, the highest level since late 2007.
The federal funds rate, set by the central bank, is the interest rate at which banks lend and borrow overnight. Although not the rates consumers pay, the Federal Reserve’s moves still affect the interest rates on loans and savings they see every day.
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Original news from RT in Spanish.
