The U.S. Bureau of Labor Statistics (BLS) said producer prices rose 6.3% over the year through September, while Bitcoin (BTC) briefly fell below $80,000 in CoinDesk's market updates ahead of the Federal Reserve's next meeting.
The final-demand Producer Price Index increased 1.3% from August after seasonal adjustment, BLS data released Oct. 15 showed. That was the sharpest monthly gain since March 2022. The 6.3% annual rise was unadjusted and the largest since December 2022.
Energy prices rose 10.8% during September, including a 20.3% jump in gasoline. Energy accounted for more than 80% of the monthly increase in final-demand goods prices. An index excluding foods, energy and trade services advanced 0.5% for the month and 5.0% over 12 months.
The BLS also reported that the Consumer Price Index (CPI) rose 0.6% in September after seasonal adjustment and stood 3.7% above its year-earlier level. Gasoline accounted for more than half of the monthly increase in the overall CPI.
The PPI measures the average change over time in prices received by domestic producers for their output. The Federal Reserve's longer-run inflation objective is 2%, measured using the personal consumption expenditures price index, so the PPI's 6.3% annual increase is not directly comparable with that target.
CoinDesk's 7:26 a.m. ET update, before the 8:30 a.m. ET data release, put Bitcoin near $81,000, down 2.75% over 24 hours. The outlet reported XRP and Ether (ETH) down 4%-5% in that snapshot. At 9:54 a.m. ET, CoinDesk put Bitcoin at $79,950; by 10:35 a.m. ET, it reported $82,200, up 0.5% over 24 hours, while XRP was down 2%. The snapshots show a volatile session but do not establish that the PPI release alone caused the price moves.
CoinDesk reported that an 8:56 a.m. ET CME FedWatch snapshot put the probability of a rate increase at the Oct. 27-28 meeting at 27%. Reuters later reported that markets continued to expect the next increase in December; neither figure represents official Fed guidance. Chris Osmond, chief investment officer at Fifth Third Wealth Advisors, told Reuters that holding rates steady could still make sense, though persistent inflation would make that choice harder to defend.
The International Monetary Fund (IMF) scheduled Fed Chair Kevin Warsh and Managing Director Kristalina Georgieva for a 30-minute fireside chat at 11:30 p.m. ET Thursday, Oct. 15 (10:30 a.m. Friday, Oct. 16, in Bangkok). The Federal Reserve's calendar lists its next policy meeting for Oct. 27-28.
