Key Insights
- US PPI inflation rose 0.3% in October and 6.5% year over year.
- Crypto market surged hourly, while Bitcoin price moved above $70,000.
- BofA expects interest rate increases in December 2026, January, and March 2027.
US PPI inflation rose 0.3% in October, below economists’ forecast for a 0.4% increase. Over 12 months, producer prices climbed 6.5%, compared with expectations of 6.6%.
The report arrived as financial markets weighed the size of a potential December Fed rate hike. Bitcoin rose 1.35% and moved above $70,000 after the release. Gold gained 0.6% and climbed above $3,900.
US PPI Inflation Report Shows Core Prices Match Forecasts
The Bureau of Labor Statistics reported that core producer prices rose 0.3% from September. The measure excludes food and energy. Core PPI also increased 5.0% from a year earlier. Both readings matched forecasts.
Another measure of US PPI inflation also increased during October. Producer prices excluding food, energy, and trade services rose 0.5% from the previous month.
The producer price report followed a stronger-than-expected rise in consumer prices. Reuters reported the October consumer inflation figures on November 10.
Earlier government data showed that nonfarm payrolls increased sharply in October. The unemployment rate dropped to 4.1%, from 4.2% in September. The government released that employment report on November 6.
Fed Rate Hike Outlook Extends Into 2027 After US PPI Data
The US PPI inflation release arrived amid questions about the Federal Reserve’s next interest rate decision. The central bank left its benchmark overnight rate at 3.75% to 4.00% at its October meeting.
Federal Reserve Governor Christopher Waller had raised the possibility of a 50-basis-point increase in December. Financial markets have weighed that larger move against a 25-basis-point increase.
Ahead of the producer price release, CME FedWatch data showed a 91% chance of a December rate increase. Market pricing also pointed to another increase in January, Reuters reported.
Separately, BofA Global Research added a 25-basis-point increase in January to its forecast. The bank now expects increases in December 2026, January 2027, and March 2027.
Treasury Secretary Scott Bessent also addressed higher borrowing costs. He cautioned the Fed against raising rates too aggressively during an energy supply shock.
Crypto Market and US Stock Market News
Before the US PPI inflation release, Bitcoin fell nearly 2% to around $74,500 on November 9. The drop came ahead of the next day’s consumer inflation report. Bitcoin price later fell to $69,552.55. Its seven-day loss stood at 9.1%.
Ethereum traded at $1,967.98, down 3.1% over 24 hours and 12.6% over seven days.
XRP stood at $1.03, down 1.7% over 24 hours and 14.8% over seven days. Solana traded at $81.53, down 2.1% over 24 hours and 10.7% over the week.
BNB stood at $643.87, down 3.5% for the day and 8.0% over seven days. TRON traded at $0.3133, down 1.1% over 24 hours and 1.7% over seven days.
All six non-stablecoin assets in the crypto market snapshot recorded gains over the preceding hour. XRP led with a 1.4% rise, followed by Solana at 1.1%. Bitcoin and BNB each gained 0.6%, while Ethereum rose 0.5% and TRON added 0.3%.
Before the US PPI inflation data, US stock market news included premarket losses among artificial intelligence cloud companies on November 12. The declines followed a selloff in Nvidia stock after Jensen Huang resigned as CEO.
At the time, beyond the crypto market, Nebius shares fell 20.1% before the opening bell, while CoreWeave dropped 13.6%. The Roundhill Neocloud ETF declined 12.5%, and IREN shares lost 8.1%.
