Fresh US inflation spike rattles crypto while traders hold firm on Fed pause

Producer prices jumped 6.3% year-over-year in September, with a sharp 1.3% monthly rise that marks the fastest pace since March 2022. The biggest monthly gain in final demand goods since late 2009 was driven largely by a 10.8% surge in energy costs.

The report followed a hotter-than-expected consumer inflation reading of 3.7% and came alongside softer retail sales growth of just 0.8%. Together the numbers painted a mixed but stubborn inflation picture.

Bitcoin slipped below $81,000 and dropped 3.4% on the day. Despite the data, Polymarket traders still see a 72% chance the Fed will leave rates unchanged at its late-October meeting.

Based on information from cryptonews.net