The latest inflation data from the United States indicates that consumer prices continue to rise despite expectations of a deceleration. The Consumer Price Index (CPI) summary released on Thursday showed an 8.2% gain in the year to September, and the core index rating saw its fastest annual gain since. 1982.
September CPI Data Worse than Expected, Report Signals an Fierce Fed Rate hike on Horizon, Global Markets shudder
The US inflation numbers for September are in line and the inflation rate, or CPI, is worse than expected. According to the US Bureau of Labor Statistics CPI summary released on October 13, the report shows that “The Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.4 % in September on a seasonally adjusted basis after a 0.1% increase in August.” The Bureau of Labor Statistics report added:
Over the past 12 months, the all-component index has gained 8.2% before seasonally adjusted.
The latest CPI statistics also show that “the index for all items less food and energy rose 0.6% in September, the same as in August”. Immediately after the report was released, all four major US stock indexes fell significantly against the US dollar with Nasdaq falling the most on Thursday. The crypto and precious metals markets followed a similar pattern, led by the equity markets as they fell in value against the greenback following the release of the CPI report.
Precious metals like gold and silver were also hit on Thursday as gold fell 1.37% per ounce and silver fell 1.68%. Platinum and palladium also fell from 1.59% to 2.91%. The figures on Thursday further show that the crypto economy has also faced heavy losses, as the entire market capitalization of all digital assets in existence has dropped. below the $900 billion mark.
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At the time of writing, the global crypto market cap is around $886.38 billion, down nearly 4% over the past 24 hours. Of course, the worse-than-expected inflation data from the Bureau of Labor Statistics CPI report is leading investors to believe that the Federal Reserve will aggressively raise the federal funds rate by 75 points. basic (bps). According to Twitter account Investor.com, “Fed futures [currently] are pricing [there is] a 100% chance of the Fed raising rates by 75 bps at the [November] meeting following the CPI data.”