U.S. inflation figures for August showed core consumer prices rising more rapidly than anticipated, potentially setting the stage for Federal Reserve rate adjustments.

The August CPI report gained significant attention following comments from Fed Chair Kevin Warsh two weeks ago, suggesting the central bank may need to respond if inflation doesn’t decelerate soon.

— Headline CPI matched forecasts, while core CPI climbed 0.3% compared to the expected 0.2%.

— This development could prompt the Fed to increase rates at next week’s meeting.

— Bitcoin experienced a modest decline following the announcement.

U.S. inflation data for August generally aligned with projections, but the core measurement rose at a faster pace than expected, placing a Federal Reserve rate hike next week squarely on the agenda.

The Consumer Price Index increased 0.4% in August, matching economist predictions of 0.4% and reflecting a 0.1% uptick from July.

Year-over-year, headline CPI rose 3.4%, consistent with expectations of 3.4% and July’s 3.4% figure.

Core CPI, which omits volatile food and energy costs, climbed 0.3% month-over-month, exceeding forecasts of 0.2% and July’s 0.2% increase.

Annually, core inflation stood at 2.4%, aligning with expectations of 2.4% and July’s 2.5% reading.

The price of bitcoin

The two-year Treasury yield increased six basis points to 4.61% as market participants began pricing in nearly a 100% probability that the Fed will raise rates at its upcoming policy meeting. The 10-year yield—which is less directly influenced by Fed policy—remained unchanged at 4.95%.

Nasdaq 100 futures reached a session peak, climbing 0.8%.

Typically a closely monitored report, the August CPI gained extraordinary significance over the past two weeks after Fed Chairman Kevin Warsh suggested in his Jackson Hole address that the Fed might need to take action if inflation fails to demonstrate signs of moderating soon.

Bond markets have been highly active since then, with traders shifting from anticipating no rate changes—possibly through the rest of 2026—to protecting against up to 75 basis points of tightening this year.

This movement pushed the 10-year U.S. Treasury yield from the 4.60% range to just below 5.00% ahead of this morning’s data release. The 2-year yield—which more closely tracks Fed policy—rose from 4.20% to 4.56% prior to the report.

Tokenized equities lead RWA inflows as the market recovers; Binance’s bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.

Why it matters:

Tokenized equities lead RWA inflows as the market recovers; Binance’s bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume.