At the same time, core consumer price index inflation jumped sharply to 2.8% last month.
Discussions have resumed about whether the US Fed would implement tighter monetary policy.
Inflation in the United States came in at 1.8% in September, according to the long-awaited Producer Price Index (PPI), when market forecasts had it at 1.6%. Inflation is on the rise, and investors are worried about what it may mean for Bitcoin and other cryptocurrencies in light of recent US CPI statistics. Worse still, discussions have resumed about whether the US Federal Reserve would implement tighter monetary policy. Especially, in response to the most recent batch of dismal economic statistics.
The most recent figures available from the US Department of Labor indicate that consumer price index inflation for the US was 1.8%, up from 1.7% in August. After increasing 0.2% last month, inflation has stayed constant at 0.0% on a month-over-month (MoM) basis.
Dampened Market Enthusiasm
At the same time, core consumer price index inflation jumped sharply to 2.8% last month. Far above both August’s 2.4% and market estimates of 2.6%. Monthly changes from the previous month’s 0.3% brought the Core PPI number, which does not include food and energy costs, down to 0.2%.
The whole financial industry, not to mention the cryptocurrency market, has been abuzz with these inflation estimates, which are hotter than expected. A hawkish posture by the US Fed at their scheduled conference next month is signaled by the current US CPI data. Which also surpasses the market expectation.
The most recent US PPI data has dampened market enthusiasm, suggesting that inflation is skyrocketing once again. Because of this, some are wondering if the price of Bitcoin will fall soon, while others are speculating that the Federal Reserve may lower interest rates or not at all at their next meeting.
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