U.S. inflation data aligns with expectations, supporting the Federal Reserve’s plan to maintain elevated interest rates through June.
U.S. consumer prices rose 4.2% year-over-year in May, matching economist forecasts and reinforcing the Federal Reserve’s higher-for-longer interest rate stance. Core CPI, excluding food and energy, increased 2.9% annually, also in line with projections.
Month-over-month CPI climbed 0.2%, below the expected 0.5%, while core CPI rose 0.2%, slightly under the 0.3% forecast. Markets had priced in a 98% chance of no rate change at the Fed’s June 17 meeting, with a 25 bps hike anticipated later this year.
Bitcoin traded at $61,700 following the report, showing minimal reaction as broader crypto markets remained under pressure.