U.S. September CPI comes in hot, sending bitcoin sharply lower
The news could put multiple rate hikes by the Federal Reserve back into play.
U.S. inflation sped up more than expected in September, perhaps putting multiple Federal Reserve rate hikes back into play.
The September Consumer Price Index rose 0.6%, according to a Wednesday morning report from the Bureau of Labor Statistics. That’s up from 0.4% in August, and in line with economist forecasts for 0.6%.
On a year-over-year basis, CPI rose 3.7% versus 3.4% in August and estimates for 3.6%.
Core CPI — which strips out food and energy costs — rose 0.3% in September against 0.3% in August, and above forecasts for 0.2%.
Year-over-year core CPI was higher by 2.6% versus 2.4% the previous month and estimates for 2.5%.
Bitcoin dropped $1,000 on the news, now trading at $82,800.
Ahead of the data, a string of Fed speakers had hinted that the central bank was likely to raise interest rates another 25 basis points before year-end. Market pricing reflected that information, with most expecting the central bank to pause at its upcoming meeting later this month, but hike at its final meeting of the year in early December.
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