Bitcoin's price fell about 0.5% following the release of U.S. inflation data for August, which showed a 0.4% increase, surpassing the anticipated 0.3%. The core Consumer Price Index (CPI), excluding food and energy, remained steady at 0.3%, aligning with forecasts. The year-over-year CPI was also reported at 2.9%. Additionally, weekly initial jobless claims rose significantly to 263,000, indicating further challenges in the employment market. While the inflation figure prompted a slight decline in Bitcoin's price from $114,300 to $113,700, it is not expected to hinder the Federal Reserve's plans to reduce interest rates at the upcoming meeting. The markets had priced a high likelihood of a 25 basis point cut, with the inflation results likely diminishing any expectations of a more substantial reduction. The overall economic landscape remains complex, with inflation pressures and a deteriorating labor market posing challenges for policymakers in navigating economic recovery.

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