American inflation is 'blazing hot': experts warn

Inflation in the United States appears to be spiraling out of control again. U.S. producer prices rose much more sharply than expected in September, causing unrest in the financial markets.

Analysts warn that the central bank may need to keep interest rates high for longer, which could be bad news for bitcoin and other cryptocurrencies. However, some experts see a reason to invest more in assets.

In brief:

• Producer prices rose much more sharply in September than economists had expected.

• Analysts fear that the U.S. central bank will need to keep interest rates high for longer.

• The Kobeissi Letter expects further currency devaluation and therefore sees more value in assets than in cash.

'The fight against inflation is back'

Macro analyst Nic Puckrin from Coin Bureau describes the figures on X as "hot." According to him, they further pressure the U.S. central bank to keep interest rates high for longer. This is happening at a time when technology stocks are already declining and concerns about financing artificial intelligence are increasing.

Nic
@puckrin
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US PPI came in HOT! It hit 6.3% vs 5.3% expected. Core came in at 5.0% MoM vs. 4.4% exp. That puts more pressure on the Fed to keep rates higher for longer, just as markets are grappling with a tech sell-off and rising AI financing costs. The inflation fight is back on!

Nic
@puckrin

Given what happened yesterday, everyone is watching the PPI release today. 5.3% is expected vs. 5.4% previous What to watch: - Above 5.3%: More pressure on markets - Below 5.3%: Potential relief rally - At 5.3%: The details will matter 8:30 AM EST we find out.
12:35 PM · Oct 15, 2026
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Dutch crypto trader Merlijn The Trader points out that both the regular producer prices and the core measurement rose more than twice as hard as expected. The day before, U.S. consumer inflation also came in higher. According to him, the two publications in succession confirm that inflationary pressure is back.

Merlijn The Trader

@MerlijnTrader
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🚨 BREAKING: PPI JUST CAME IN SCORCHING HOT. PPI M/M: 1.3% (EXPECTED 0.6%) CORE PPI M/M: 0.7% (EXPECTED 0.3%) MORE THAN DOUBLE THE FORECAST. INFLATION CONFIRMED TWICE IN 2 DAYS. THIS IS BAD.
Watch on X
12:33 PM · Oct 15, 2026
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The U.S. Bureau of Labor Statistics reports that the monthly increase was the largest since March 2022. Energy contributed significantly: producer prices for energy rose by 10.8 percent in September.

Higher interest rates could hit bitcoin

Puckrin's reaction is important for crypto investors. If inflation remains stubbornly high, the Federal Reserve may decide to keep interest rates high for longer or raise them again.

High interest rates make saving and bonds more attractive. This could lead to less money flowing into risky investments like technology stocks and bitcoin. Thus, the new figures increase the likelihood of further unrest in the crypto market, although they do not solely determine what the central bank will do.

Experts see assets as a way out

Analysts from The Kobeissi Letter draw a different, more long-term conclusion. The market platform states that current prices may seem cheap for Americans in twelve to 24 months and writes: "The only thing you can do is hold assets."

The Kobeissi Letter
@KobeissiLetter
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Inflation is RED hot in the US. For anyone not keeping track, US CPI inflation is now nearly double the Fed's 2% target and US PPI Inflation is more than triple that target. PPI inflation was expected to fall in August, but instead it surged to 6.3%, its second highest level in Show more
12:37 PM · Oct 15, 2026
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This refers to the declining purchasing power of cash when prices continue to rise for an extended period. For crypto investors, there is a clear tension here: scarce assets may seem more attractive in the long term, while high interest rates could pressure bitcoin in the short term.

The next U.S. interest rate meeting is scheduled for October 28. Until then, investors will be closely watching for new signals about inflation and the central bank's response.

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