The U.S. Bureau of Labor Statistics (BLS) released its Consumer Price Index (CPI) report, showing a slight increase in inflation in September. In the aftermath, the cryptocurrency market reacted and the price of Bitcoin (BTC) rose.
Notably, this is the first time since 2018 that CPI data has been released on a Friday during a U.S. government shutdown.
Sponsored Sponsored
Annual inflation rate reaches 3% in September, according to US CPI data
According to the latest data, the US CPI in September 2025 was 3% year-on-year, slightly lower than the expected 3.1%. Economists had expected the headline CPI to rise 0.4% month-on-month, but it rose only 0.3%. This follows August’s CPI reading of 2.9%.
“US CPI: +3% y/y (estimated +3.1%). US Core CPI: +3% y/y (estimated +3.1%),” TreeNews highlighted.
Bitcoin, which had been volatile following the October crash, soared after the release of new inflation data. The price soared more than 1%, with BTC reaching $112,194 before stabilizing at $111,474 at the time of writing.
The CPI measures how the prices of everyday goods and services change over time, reflecting the rate of inflation. Track the cost of items like food, housing, transportation, and more to see how your overall cost of living changes.
Sponsored Sponsored
Policy makers often use CPI data to measure inflation pressures and guide interest rate and economic policy decisions. Notably, this data arrives just five days before the Federal Reserve’s next policy meeting, making it especially important now.
The U.S. government shutdown halted the release of most other sensitive data. Therefore, CPI data will be the only major indicator the Fed will consider ahead of its key policy meeting on October 29th.
“This was arguably the most influential inflation report of the year, simply because no other economic indicators were released by the U.S. government this month. Investors have been stuck for weeks, forced to rely on private data releases and research. This report finally removes some of that uncertainty,” Coin Bureau co-founder Nick Pucklin told BeInCrypto.
Declining inflation suggests the economy is cooling in a controlled manner, giving the Federal Reserve more room to cut interest rates sooner.
“This is good news for the Fed ahead of next week’s FOMC meeting,” said analyst Dirkforst. “The Fed should definitely cut rates and end QT.”
According to the CME FedWatch tool, the market has priced in a 98.9% chance of a 25 basis point cut, while the probability of a 50 basis point cut remains slim at just 1.1%.
Lower interest rates are bullish for the crypto market as they make borrowing cheaper, increase liquidity, and encourage investors to allocate capital to riskier assets such as Bitcoin and altcoins. With inflation easing and interest rate cuts likely, all eyes are on the Fed’s next actions.
