According to macroeconomic analyst Mike "Mish" Shedlock, the underlying economic conditions in the U.S. suggest that inflation is proving to be more persistent than indicated by the consumer price index (CPI) figures released on Wednesday.
The CPI report revealed a slowdown in inflation for July, attributed to a brief decline in energy prices.
In a blog post on Wednesday, Shedlock pointed out that the temporary decreases in energy and gasoline prices make the overall inflation figure appear lower than it is. He emphasized that inflation remains stubbornly high, with food prices underestimated due to the Bureau of Labor Statistics' methods. Additionally, he noted that the CPI fails to account for significant housing expenses, including property taxes, insurance, and home prices.
This might explain why the slight month-on-month increase and year-on-year decrease in CPI did not result in a significant weakening of the Dollar Index, providing little support for bitcoin (BTC).
The cryptocurrency continues to experience volatile trading below $64,000.