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Prices of leading %Cryptocurrencies such as %Bitcoin (CRYPTO: $BTC ) and %Ethereum (CRYPTO: $ETH ) are sliding lower after the latest inflation data pointed to troublesome signs for the U.S. economy.

The July Producer Price Index (PPI) in America rose 0.9%, blowing past estimates for a 0.2% increase. On a year-over-year basis, PPI was higher by 3.3% versus forecasts for 2.5% growth.

Core PPI, which excludes food and energy prices, surged 0.9% in July, far exceeding the 0.2% expected.

That data sent risk assets such as crypto and stocks sharply lower in early trading on Aug. 14.

After hitting a record high above $124,000 U.S. over the last 24-hours, Bitcoin's price dropped to $118,400 U.S.

Similarly, Ethereum's price is down nearly 4% to $4,600 U.S. Other crypto such as %Solana (CRYPTO: $SOL ) and XRP (CRYPTO: $XRP ) are also down on the day.

The hotter-than-expected PPI reading reinforces the view that the U.S. Federal Reserve may keep interest rates elevated for longer to help tame resurgent inflation.

Expectations for a September rate cut fell by four percentage points on Aug. 14 immediately after the PPI data was made public, according to futures market data.

U.S. stocks are also in the red following the July PPI number as it looks as though tariffs are beginning to have an impact on prices in America.