- In the US, the Consumer Price Index (CPI) showed a 3.7% year-on-year increase in September. This figure is equal to the August level and slightly higher than analysts’ expectations.
- JPMorgan, Goldman Sachs, Bloomberg, Morgan Stanley, Barclays, Nomura, Citi, HSBC, and Wells Fargo were all expecting CPI to be at 3.6%.
- At the moment, traders expect about a 10% chance of the Fed raising interest rates at the November meeting based on interest rate expectations, but this probability increases to 30% by the end of the year.
Critical inflation reports in the US were announced today: Inflation data that exceeded expectations created volatility in the markets. Here are the details!
Critical Inflation Data in the US Released
In the US, the Consumer Price Index (CPI) showed a 3.7% year-on-year increase in September. This figure is equal to the August level and slightly higher than analysts’ expectations. The CPI for all urban consumers increased by 0.4% on a monthly basis.
The increase was mainly driven by housing costs, followed by gasoline. The energy index increased by 1.5% from the previous month, while the food index increased by 0.2%. The core inflation index, which excludes food and energy, increased by 0.3% on a monthly basis and 4.1% on a yearly basis.
[COINOTAG NEWS]
The annual inflation rate in the United States was announced as 3.7% (Expectation was 3.6%).
This news published on COINOTAG PRO 5 seconds ago.
— COINOTAG NEWS (@coinotagen) October 12, 2023
JPMorgan, Goldman Sachs, Bloomberg, Morgan Stanley, Barclays, Nomura, Citi, HSBC, and Wells Fargo were all expecting CPI to be at 3.6%. However, National Bank and CIBC were predicting that CPI would be at 3.7%. RBC, on the other hand, expected CPI to decrease to 3.5% in September.
The minutes from the latest meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve, which were released yesterday, suggested that policymakers mostly agreed that they would likely need to raise interest rates once more before ending the monetary tightening cycle.
Bitcoin, the Dollar, and Gold’s Reactions
The price of Bitcoin was trading at $26,822 before the inflation reports were released. Following the data release, there was a significant increase in volatility, and the price experienced a 0.25% drop to $26,753. However, it quickly recovered and is currently trading at $26,824.
The Dollar Index (DXY) was at 105.655 before the reports were released, and it experienced a sudden upward movement after the data was released. DXY increased by 0.40% to reach 106.099.
As for gold, it experienced a 0.48% drop from $1884 to $1875 following the release of the inflation reports in the US. Currently, gold is trading at $1879.
