Macroeconomic expert Mike "Mish" Shedlock argues that inflation in the U.S. is proving to be more enduring than what the latest consumer price index (CPI) figures suggest. The CPI report for July indicated a slowing inflation rate, primarily due to a temporary dip in energy prices.
In his analysis, Shedlock highlighted that the recent drops in energy and gasoline prices can distort the perception of overall inflation levels. He pointed out that inflation continues to be high, with food prices likely underestimated due to the methods used by the Bureau of Labor Statistics. Furthermore, he criticized the CPI for not adequately reflecting substantial housing costs such as property taxes, insurance, and home prices.
This persistent inflation might explain why the recent slight month-on-month increase and year-on-year decrease in CPI did not lead to a marked decline in the Dollar Index, offering minimal support for bitcoin (BTC), which continues to trade volatily below the $64,000 mark.
