♾ Inflation data just shattered expectations

Inflation fell sharply and unexpectedly — one of the largest monthly drops since 2023.

Markets were positioned for CPI to rise to 3.1%.

Instead, it collapsed to 2.7%.

Core CPI is now at its lowest level since March 2021.

This data It significantly strengthens the case for earlier and deeper rate cuts, especially if labor data continues to soften.

Risk assets (bitcoin, eth) should interpret this as supportive in the medium term, but in the short term, expect volatility as markets rapidly reprice Fed expectations.
Lower inflation is bullish, but only as long as it doesn’t signal a sudden demand slowdown.