Updated 1 hr ago Published 1 hr ago
2 min read
U.S. inflation figures for August aligned largely with projections, though the core index climbed quicker than anticipated, keeping a Federal Reserve rate increase next week squarely under consideration.
The Consumer Price Index advanced 0.4% during August, matching analyst predictions of 0.4% and following July’s 0.1% upward movement.
Measured year-over-year, headline CPI increased by 3.4%, matching projections of 3.4% and remaining steady compared to July’s 3.4% print.
Core CPI, which leaves out unstable energy and food expenses, climbed 0.3% from the previous month, outpacing estimates of 0.2% and exceeding July’s 0.2% increase.
On an annual level, core inflation registered at 2.4%, matching forecasts of 2.4% and easing from July’s 2.5% figure.
The valuation of bitcoin BTC$77,374.08 declined back down to $76,700 shortly after the release of the figures.
The two-year Treasury yield climbed six basis points, reaching 4.61% as market participants started pricing in almost a 100% probability that the central bank will raise interest rates during its upcoming policy gathering next week. Meanwhile, the 10-year yield—which has less direct sensitivity to monetary policy—remained unchanged at 4.95%.
Nasdaq 100 futures climbed toward a session high, posting a 0.8% gain.
Consistently monitored closely by analysts, the August CPI report gained exceptional significance over the preceding fortnight after Federal Reserve Chairman Kevin Warsh suggested during his Jackson Hole address that policymakers might need to intervene if price pressures failed to display cooling tendencies soon.
Fixed-income markets have experienced intense volatility ever since, with investors shifting rapidly from pricing out further rate increases—potentially for the entirety of 2026—to protecting positions against as much as 75 basis points of monetary tightening throughout the year.
This shift drove the benchmark 10-year U.S. Treasury yield upward from the 4.60% region to nearly touching 5.00% prior to this morning’s release. Simultaneously, the 2-year yield, which tracks monetary policy expectations more closely, advanced from 4.20% to 4.56% ahead of the report.
Originally published at https://www.coindesk.com/markets/2026/09/11/core-cpi-rose-a-faster-than-forecast-0-3-in-august-setting-up-fed-rate-hike.
