The Bureau of Labor Statistics reported headline CPI up 0.4% month-over-month, holding the annual rate at 3.4%, while core CPI eased to 2.4% as expected. Energy costs, especially a 3.9% surge in gasoline, drove much of the increase, pushing futures markets to price in 79-90% odds of a 25-basis-point hike at the September FOMC meeting, up from 70%.
This steady print reinforced a 'higher for longer' rate outlook amid political pressures from President Trump on Fed policy, with Treasury yields rising and crypto traders eyeing Bitcoin's response near $77,000–$79,000.