US CPI Inflation LIVE Updates Today Oct. 14: Will Hot CPI Data Trigger Bitcoin, XRP, Crypto Selloff?
Bitcoin, Ethereum, XRP Face Inflation Test As Traders Watch Fed Policy
Bitcoin, Ethereum, XRP and other cryptocurrencies face a fresh macroeconomic test as investors await September US CPI data. Inflation figures could shift expectations for the Federal Reserve’s next policy decision in October.
A stronger-than-expected reading may increase concerns about prolonged restrictive monetary policy, potentially weighing on digital assets. Conversely, softer underlying inflation could ease pressure on markets by reducing expectations of further tightening. The reaction will depend on the composition of the report and whether investors interpret the figures as evidence of persistent inflation or temporary energy-related price increases.
US Wage Growth Slows As Fed Assesses Inflation Risks
US wage growth slowed in September, potentially easing concerns that labour costs could sustain inflationary pressure. Average monthly wage growth fell to 0.1%, while the annual rate declined to 3.0%. The moderation comes as employers added only 29,000 jobs during the month, indicating softer labour market conditions.
For the Federal Reserve, slower wage growth could reduce concerns about domestic inflation pressures reinforcing higher energy costs. However, policymakers will need to assess the September CPI figures before determining whether inflation is cooling sufficiently to justify keeping interest rates unchanged.
US Jobs Growth Weakens Ahead of September CPI Report
The US labor market is showing signs of losing momentum ahead of the September inflation report. Employers added just 29,000 jobs during the month, while downward revisions reduced July and August payrolls by a combined 60,000. Unemployment remained at 4.2%, adding to concerns about employment conditions.
The figures complicate the Federal Reserve’s inflation outlook because policymakers must weigh rising consumer prices against weaker hiring. A combination of persistent inflation and slowing employment could make the central bank’s next interest rate decision more difficult.
Core CPI Inflation May Offer Relief to Federal Reserve
Core CPI inflation is expected to provide a different picture of US price pressures in September. Monthly core inflation is forecast to slow to 0.2% from 0.3% in August, although its annual rate could edge higher to 2.5% from 2.4%.
The figures exclude food and energy prices, helping investors assess inflation trends beyond volatile categories. A softer monthly reading could reassure the Federal Reserve that underlying price pressures are moderating, even as rising energy costs push headline inflation higher.
US CPI Inflation Forecast: Headline Inflation Could Reach 3.7%
US core CPI inflation is forecast to rise to around 3.7% on an annual basis in September from 3.4% in August. Inflation is expected to rise to 0.6% in the month ahead from 0.4% as prices are projected to resume their pressure.
The increase is expected due to the higher oil prices, and will focus on energy costs in the upcoming report. The data may have implications for the financial markets as investors determine if inflation is moving further from the Fed’s 2 percent objective. If price pressures have been greater than expected, this is what will be determined from the actual reading.
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