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August US Inflation Rate at 8.3%, Says Peter Schiff, ‘Days of Sub-2% Inflation Are Over’ in US Crypto Briefing


On September 13, the US Bureau of Labor Statistics reported that the country’s consumer price index (CPI) inflation jumped 8.3% a year in August. The cut was less than expected and market analysts believe the US Federal Reserve will continue its aggressive rate hikes going forward.

Consumer prices in the United States rose at an annual rate of 8% from 8.3%, according to the latest CPI report

US inflation figures for August are in, according to the calculations recently published by the US Bureau of Labor Statistics. The Bureau of Labor Statistics wrote on Tuesday that “the consumer price index for all urban consumers (CPI-U) rose 0.1% in August on a seasonally adjusted basis after remaining unchanged in July – During over the past 12 months, the index for all items increased 8.3% before seasonal adjustment.

Market strategists did not expect the inflation rate to be so high, as the reports note that “economists expected prices to fall 0.1% in August during the month and are slowing at an annual rate of 8%. Economist and gold bug Peter Schiff was quick to criticize the US dollar and the country’s fiscal policy. “Once again, the market reaction to [a] inflation much higher than expected is a mistake,” Schiff said. tweeted tuesday. “Inflation is here to stay and will get worse despite rate hikes, due to over a decade of inflationary monetary and fiscal policy. This is very bearish for the dollar and bullish for gold,” added Schiff.

Amid the worst-than-expected inflation report, Wall Street’s four major indexes (NYSE, Nasdaq, Dow Jones, S&P 500) fell significantly after the release of the Bureau of Labor Statistics report on Tuesday. All five precious metals (gold, silver, palladium, platinum, rhodium) posted losses against the US dollar in the past 24 hours, with gold down 1.47%. After printing some gains the day before, the crypto economy also lost 5.8% against the dollar on Tuesday. Over the past day, bitcoin (BTC) lost 6% in USD value while ethereum (ETH) fell 8%.

Bankrate.com analyst says CPI is far from Fed’s 2% target, Peter Schiff says inflation rates below 2% are a thing of the past and will never come back

Meanwhile, Tuesday’s CPI data leads investors to believe that the Fed will be aggressive when raising the benchmark bank rate at the next meeting. Mark Hamrick, senior economic analyst at Bankrate.com, thinks August’s inflation report will do little to convince the Fed to act dovishly next week. Hamrick expects the US central bank to keep the federal bank rate confined until inflation subsides.

“They want to embed their benchmark rate in [economically] restrictive territory and hold it longer,” Hamrick said. “Pending what President Jerome Powell has said, there must be ‘compelling evidence that inflation is falling, which is consistent with inflation returning to 2%’… We are staying away from that destination .” Schiff thinks it’s absurd that people expect the 2% inflation rate to return, and the gold bug wholeheartedly believes that days of inflation below 2% will always be a distant memory. In a tweet posted on Monday, Schiff stress:

The days of sub-2% inflation are over. There is no going back to the anomaly experienced between the financial crisis of 2008 and 2021. The inflation chickens that the Fed kicked in with QE have finally gone home. The price increases seen so far are just the beginning.

Keywords in this story

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What do you think of the latest inflation report? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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