U.S. CPI rose stronger than expected 0.4% in October; core rate rose 0.3%
The U.S. Consumer Price Index rose by 0.4% in October, exceeding market expectations and fueling concerns about further Federal Reserve interest rate hikes. Consequently, both stock index futures and Bitcoin prices experienced declines as investors adjusted their portfolios.
Why it matters
Higher-than-expected inflation data increases the likelihood of aggressive monetary policy, which impacts global financial markets and borrowing costs.
The Consumer Price Index rose 0.4% in October, down from 0.6% in September and worse than forecasts for 0.3%.
The core CPI rate — which excludes food and energy costs — rose 0.3% versus 0.3% in September and forecasts for 0.2%.
The year-over-year CPI rate wasn’t released by the BLS as there was no October 2025 report due to the then-ongoing government shutdown.
Bitcoin is adding to early losses, dipping about another 1% to $73,600. U.S. stock index futures have turned decidedly lower as well, the Nasdaq 100 now down 1.15% and S&P 500 off 0.5%.
Interest rates were up sizably ahead of this morning’s print after Fed Governor Chris Waller overnight suggested the central bank should hike next month even if the CPI report was soft, and further opined that the Fed might consider a 50-basis-point rate move if CPI came in strong.
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