US Inflation Data for October Better Than Expected, Bitcoin Price Rises

According to CoinDesk, U.S. inflation data for October showed better-than-expected results, with the headline Consumer Price Index (CPI) remaining flat for the month, compared to economist forecasts of a 0.1% rise. The core rate increased by 0.2%, beating expectations of 0.3%. On a year-over-year basis, CPI was higher by 3.2% versus expectations of 3.3% and 3.7% in September. The core CPI, which excludes food and energy costs, rose 0.2% in October against forecasts of 0.3% and September's 0.3%. On a year-over-year basis, core CPI was higher by 4.0% versus 4.1% expected and 4.1% in September. Following the news, the price of bitcoin (BTC) increased by nearly 1% to just under $36,700. Although headline CPI inflation has been declining for months, it has remained above the U.S. Federal Reserve's 2% target. Additionally, the core rate had consistently stayed above 4% for several months. Federal Reserve members have hinted at the possibility of one more rate hike before ending the current 20-month monetary tightening cycle. Joseph Brusuelas, chief economist at RSM, called the data 'good news' and noted that core goods prices actually declined 0.2% in October. He also predicted more disinflation moving forward, especially as shelter costs ease into mid-2024. Prior to the report, traders estimated an 86% chance the Federal Reserve would hold rates steady at its next meeting in mid-December, and a 75% chance of a continued pause at the January meeting, according to the CME FedWatch Tool. After the data release, the odds of a December pause rose to 99.5% and for a January pause to 95.6%.