• The Federal Reserve paused rate rises last month for the first time in almost a year.
• Inflation has been brought down from 9% in August 2022 to 4% in May.

The U.S. June Consumer Price Index (CPI) will be released on Wednesday, and the PPI will be released the following day, bringing attention back to inflation statistics after a week of major employment announcements.

In the event of a drop, investors may hope that the Federal Reserve would reconsider its plan to increase interest rates by 25 basis points (bps). The Federal Reserve paused rate rises last month for the first time in almost a year, signaling a return to monetary hawkishness.

Investors to Keenly Observe

Inflation has been brought down from 9% in August 2022 to 4% in May thanks to the Fed’s effort, but there are now fears that the Fed may have gone too far and sent the country into a deep recession.

U.S. monetary policy watchers will be looking at the June Consumer Price Index report from the Labor Department on Wednesday. The CPI has crept slowly lower from last year’s peak. The majority of economists expect the index to drop by around 3% in June, while experts, said on Monday that the index might fall by as much as 2.8%.

The PPI, which tracks changes in wholesale prices, is a good indicator of what customers might expect to see at the checkout counter. May’s PPI of 1.1% annual growth was much lower than April’s 2.3% increase and far below market estimates of a 1.5% drop. In June, economists expect an outcome of 0.4%.

Crypto investors will be keenly observing the statistics as it is highly likely to affect the volatility of all cryptocurrencies.

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