The much-anticipated U.S. Producer Price Index (PPI) data showed that inflation in September was higher than expected at 1.8%, while the market expected 1.6%. This rising inflation number, especially after the recent release of U.S. CPI data, has raised concerns about its potential impact on BTC and other cryptocurrencies. In addition, the latest set of bleak economic data has sparked debate on whether the Federal Reserve will once again adopt a tightening monetary policy.

US PPI data better than expected

The latest data from the U.S. Department of Labor showed that the U.S. PPI inflation rate was 1.8%, up from 1.7% in August. The month-on-month inflation rate remained unchanged at 0.0%, up 0.2% in the previous month.

Meanwhile, core PPI inflation surged to 2.8% last month, higher than the market expectation of 2.6% and 2.4% in August. On a month-on-month basis, the core PPI index excluding food and energy prices was 0.2%, compared with 0.3% last month.

These higher-than-expected inflation numbers have sparked discussion across the financial sector, not to mention the cryptocurrency market. The recent U.S. CPI data also exceeded market expectations, suggesting that the Federal Reserve will take a hawkish stance at its upcoming meeting next month.
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