U.S. September CPI Disappoints, Rising a Faster Than Expected 0.2%
Inflation in the U.S. rose more than expected in September, with the Consumer Price Index (CPI) increasing by 0.2%, surpassing forecasts of 0.1%. Year-over-year CPI was up 2.4%, against an expected 2.3%. Core CPI, excluding food and energy, rose 0.3%, exceeding the forecast of 0.2%. Year-over-year core CPI increased by 3.3%, higher than the anticipated 3.2%. Following the report, bitcoin's price fell nearly 2% to $60,800. The Federal Reserve initiated a rate-cutting cycle with a 50 basis point cut in September, but expectations for further cuts have reversed due to hawkish comments from Fed officials and a strong employment report. The likelihood of a 50 basis point cut in November is now zero, with a 26% chance that rates will remain unchanged. Initial jobless claims rose to 258,000, up from 225,000, potentially influenced by Hurricane Helene.
