U.S. October CPI rises 0.4% from prior month, above forecast

The U.S. Department of Labor said the October consumer price index rose 0.4% from a month earlier, above the 0.3% forecast. Cryptocurrencies, which are generally treated as risk assets, tend to react sensitively to CPI data, a key inflation gauge that influences the Federal Reserve’s interest-rate decisions. A stronger-than-expected CPI reading can weaken expectations for Fed rate cuts, while a softer reading can be interpreted as a sign of easing inflation and strengthen expectations for rate cuts. Risk assets generally tend to rise when expectations grow for greater liquidity tied to lower rates. The Bureau of Labor Statistics did not release the year-over-year change for October because the government shutdown disrupted data collection that month.