U.S. September CPI comes in hot, sending bitcoin sharply lower

U.S. inflation sped up more than expected in September, perhaps putting multiple Federal Reserve rate hikes back into play.

The September Consumer Price Index rose 0.6%, according to a Wednesday morning report from the Bureau of Labor Statistics. That’s up from 0.4% in August, and in line with economist forecasts for 0.6%.

On a year-over-year basis, however, CPI rose 3.7% versus 3.4% in August and above estimates for 3.6%.

Core CPI — which strips out food and energy costs — also disappointed, rising 0.3% in September. That was the same pace as August, but above consensus forecasts for 0.2%.

Year-over-year core CPI was higher by 2.6% versus 2.4% the previous month and above estimates for 2.5%.

Bitcoin BTC$83,212.45 dropped $1,000 on the news, now trading at $82,800.

The bond market is getting crushed, the 10-year U.S. Treasury yield jumping 9.3 basis points to 5.308%, and the 2-year yield soaring 13.1 basis points to 4.924%.

Nasdaq 100 futures are lower by 0.65% and S&P 500 futures by 0.3%. Gold has slumped 1.5% to $4,116 per ounce.

Ahead of the data, a string of Fed speakers had hinted that the central bank was likely to raise interest rates another 25 basis points before year-end. Market pricing reflected that information, with most expecting the central bank to pause at its upcoming meeting later this month, but hike at its final meeting of the year in early December.

This morning’s numbers just might put an October rate hike back on the table.