The US government shutdown has meant a lack of official economic data this month, but the Bureau of Labor Statistics got enough of its group together to issue its consumer price index (CPI) report for September, and it came in better than expected.
CPI rose 0.3% month-on-month, compared with economists’ expectations of 0.4% and August’s 0.4% increase. On an annual basis, CPI rose 3.0% against forecasts of 3.1% and August’s 2.9%.
Core CPI – which excludes volatile food and energy prices – rose 0.2% month-on-month versus expectations of 0.3% and August’s 0.3%. Year-on-year core CPI was 3.0%, compared with expectations of 3.1% and August’s 3.1%.
Bitcoin added to earlier gains in the immediate aftermath of the report, now trading at $111,600.
In traditional markets, US stock index futures also added to earlier gains, with the Nasdaq 100 now higher by just 1%. The 10-year Treasury yield fell two basis points to 3.97% and the dollar weakened a hair.
Ahead of the inflation data, traders had already priced in a 100% chance of a 25 basis point rate cut at the Federal Reserve’s policy meeting next week, according to CME FedWatch. Markets were also expecting about a 90% chance of a further 25 basis point rate cut at the Fed’s last meeting in December this year.
