Consumer prices rose at their fastest annual pace in three years, inflation numbers released on Wednesday showed, supporting expectations that the Federal Reserve will maintain a restrictive policy stance and potentially put further pressure on crypto prices.
The Consumer Price Index rose 4.2% in May from a year earlier, the U.S
Bureau of Labor Statistics said on Wednesday. The increase, which was in line with economists’ expectations, marked the third straight month in which inflation’s annual pace accelerated. On a monthly basis, the bureau indicated that inflation rose 0.5%, an increase largely driven by surging energy costs that matched economists’ forecasts.
The report comes amid renewed conflict between the U.S. and Iran, a clash that’s squeezed global oil supplies. Although annual inflation hit its highest level since May 2023, Bitcoin advanced following Wednesday’s snapshot, edging up to roughly $61,750 from $61,000 over a 15-minute period. It later changed hands at $62,000, a 0.3% increase over the past day, according to CoinGecko.