US CPI Exceeds Expectations, XRP and Bitcoin Drop Sharply

XRP came under selling pressure after the U.S. Bureau of Labor Statistics released September CPI data that exceeded expectations across all major measures.

The Consumer Price Index (CPI) report raised concerns about persistent inflation and triggered a reaction across financial markets, including cryptocurrencies, as Bitcoin (BTC) and the rest of the market lost billions within minutes.

US CPI Comes in Hotter Than Expected

For context, consumer prices increased by 0.6% month-over-month, lifting annual inflation to 3.7% from 3.4% in August.

The figure also exceeded economists’ consensus forecast of 3.6%, reversing the modest disinflation trend from the early months of 2026. The unexpected increase renewed concerns that inflation could remain elevated for longer than markets anticipated.

Higher energy costs played a massive role in the increase. Specifically, gasoline prices jumped 9.1% in September, accounting for approximately half of the monthly headline CPI gain, while overall energy prices advanced 5.2%.

Core CPI, which excludes food and energy, rose 0.3% month-over-month against expectations of 0.2%. Annual core inflation climbed to 2.6% from 2.4%, exceeding the 2.5% forecast. Meanwhile, real earnings fell 0.5%, raising concerns about the effects of sustained inflation on risk assets such as XRP.