The U.S. government shutdown led to a shortage of official economic data this month, but the Bureau of Labor Statistics rounded up enough of its panel to release its Consumer Price Index (CPI) report for September, and it came in better than expected.
The CPI rose 0.3% month over month, compared with economists’ expectations of 0.4% and August’s 0.4% increase. On an annual basis, the CPI rose 3.0%, compared to the forecast of 3.1% and 2.9% in August.
The core CPI – which excludes volatile food and energy prices – climbed 0.2% month over month, compared to 0.3% expected and 0.3% in August. Year-over-year core CPI was 3.0%, compared to 3.1% expected and 3.1% in August.
Bitcoin added to earlier gains immediately after the report was released, now trading at $111,600.
In traditional markets, U.S. stock index futures also contributed to earlier gains, with the Nasdaq 100 now up just under 1%. The 10-year Treasury yield fell two basis points to 3.97% and the dollar weakened a hair.
Before the inflation data was released, traders had already forecast a roughly 100% chance of a 25 basis point rate cut at next week’s Federal Reserve policy meeting, according to CME FedWatch. Markets were also pricing in a roughly 90% chance of seeing an additional 25 basis point rate cut at the Fed’s final meeting of the year in December.
