This week witnessed a significant event in the financial markets that became the focal point for investors. Yesterday’s Producer Price Index (PPI) data came in significantly below expectations, sparking increased enthusiasm and interest. Prior to the release of the data, survey results had indicated predictions of a 50 basis point cut by 64% of respondents, while 40% anticipated a 75 basis point reduction annually. Unfortunately, the survey, which shared predictions of 100 economists, does not signal as positive a scenario as hoped.
US Inflation Data
Since August, tariffs have had a clear impact on inflation, which is reflected in the data emerging since February. The implementation of global rates in August and the increase in the standard 10% (introduced in February) for most countries have created an environment where the effects of tariffs can be clearly observed.
Although the European Central Bank made a slight upward revision for inflation today, it did not change interest rates. Meanwhile, the United States released the following consumer inflation figures;
- US Consumer Price Index (CPI) Reported: 2.9% (Expected: 2.9%, Previous: 2.7%)
- US Core CPI Reported: 3.1% (Expected and Previous: 3.1%)
The alignment of the reported figures with expectations is highly positive. On a monthly basis, core inflation rose by 0.3% while headline inflation increased by 0.4%, surpassing expectations by 0.1%, which is negative. However, this development is positive for cryptocurrencies, which were bracing for the assumed incredibly negative impacts of tariffs on inflation. The excessive pricing is now expected to be curtailed again, anticipated to drive up cryptocurrencies. In the coming hours, Bitcoin (BTC) 
$77,690 may test levels of 116,000 to 118,000 dollars.
