US inflation hits 3.7% as Gold and Bitcoin fall but Dollar surges

CPI report: Core inflation also beats forecasts

Core inflation, which excludes food and energy, reached 2.6%, versus 2.5% expected. Core consumer prices rose 0.3% month on month, exceeding the 0.2% forecast. Headline consumer prices increased 0.6% from August, matching expectations.

US short-term interest rate futures fell as traders increased bets on further Federal Reserve rate hikes. The anticipated easing in underlying price pressures failed to materialise.

Market reaction: Gold, Bitcoin and S&P 500 indication decline

Bitcoin slid to around $82,829, while gold dropped to approximately $4,129 per ounce. IG’s pre-market S&P 500 indication fell from roughly 7,830 to 7,795 points. The initial reaction is consistent with higher interest rate expectations, which can weigh on non-yielding assets and equity valuations.