The US government shutdown has resulted in a lack of official economic data this month, but the Bureau of Labor Statistics got enough members of its group to release a Consumer Price Index (CPI) report for September, and it came in better than anticipated.
The CPI rose 0.3% month-on-month, compared with economists’ expectations of 0.4% and a 0.4% rise in August. On a year-on-year basis, the CPI rose 3.0%, compared with forecasts of 3.1% and 2.9% in August.
Core CPI – which excludes volatile food and energy prices – climbed 0.2% month-on-month, beating expectations of 0.3% and August’s 0.3%. Year-on-year core CPI was 3.0%, compared with the expected 3.1% and August’s 3.1%.
Bitcoin Earlier gains extended shortly after the report and are now trading at $111,600.
Ahead of the inflation data, traders were already estimating a near 100% chance of a 25 basis point rate cut at the Federal Reserve’s policy meeting next week, according to CME FedWatch. Markets also estimated there was a 90% chance of an additional 25 basis points rate cut at the Fed’s final meeting of the year in December.