U.S. CPI Meets Estimates, Rising 0.2% in October; Bitcoin Moves Above $89K
U.S. inflation veri for October exactly matched economist estimates, sending bitcoin back towards the $90,000 level.
The Consumer Price Index (CPI) rose 0.2% in October versus forecasts for 0.2% and a 0.2% rise in September, according to a government report on Wednesday morning.. On a year-over-year basis, the CPI was higher by 2.6%, also matching forecasts even as it rose from 2.4% in September.
Core CPI – which excludes more volatile food and energy costs – rose 0.3% in October versus estimates for 0.3% and 0.3% in August. Year-over-year core CPI was 3.3% versus an expected 3.3% and 3.3% in September.
The price of bitcoin (BTC) rose following the numbers to $89,500. It remains higher by nearly 30% over the past week.
The U.S. Federal Reserve has cut the federal funds rate by 75 basis points since beginning an easing cycle in September. Easier monetary policy across nearly all Western central banks combined with the crypto-friendly Donald Trump election victory last week has provided the fuel for bitcon’s run to new all-time highs.
According to CME FedWatch — which factors in short-term interest rate movements into odds on what the Fed may do at its next policy meeting — the chances for an additional 25 basis point rate cut in mid-December were just under 60% prior to this morning’s veri and rose to 69% just after the print.
