Higher-than-anticipated U.S. inflation in September has raised the possibility that the Federal Reserve could resume interest-rate increases, potentially putting more than one hike back on the table.
Data released Wednesday by the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) rose 0.6% month over month, accelerating from August’s 0.4% increase while matching economists’ estimates.
Annual inflation moved up to 3.7% from 3.4% the previous month, exceeding the 3.6% forecast.
Underlying inflation also came in hotter than expected. Core CPI, which excludes food and energy, advanced 0.3% in September, unchanged from August but above the 0.2% increase analysts had projected.
Core inflation on an annual basis reached 2.6%, compared with 2.4% in August and economists’ expectations of 2.5%.
Bitcoin (BTC) reacted negatively to the report, dropping approximately $1,000 to around $82,800 after trading near $83,212.45.
Bond investors also responded to the inflation figures by selling U.S. Treasuries, driving yields higher. The benchmark 10-year yield increased 9.3 basis points to 5.308%, while the two-year yield climbed 13.1 basis points to 4.924%.
U.S. stock futures moved into negative territory, with Nasdaq 100 futures losing 0.65% and S&P 500 futures declining 0.3%. Gold fell 1.5% to $4,116 an ounce.
Ahead of the release, several Federal Reserve officials had signaled that another 25-basis-point rate increase remained possible before the end of 2026. Traders had largely expected the central bank to keep rates unchanged at its October meeting before potentially raising them in early December.
September’s inflation figures could now prompt investors to reassess that outlook, as the prospect of an October rate hike returns to market discussions.
