US Inflation Surprises with Higher Core Figure, Rate Hike Bets Soar

The latest US inflation data released on September 11 shows that prices rose 3.4% annually, matching forecasts.

However, the monthly core figure of 0.3% exceeded expectations of 0.2%, sparking a sharp drop in both Bitcoin and gold prices before they quickly recovered.

The Federal Reserve's key inflation target is actually the Personal Consumption Expenditures (PCE) index, which is not directly affected by this data point. Nevertheless, traders now have more reason to bet on a rate hike at the upcoming Fed meeting on September 15 and 16.