US May CPI in line; core cools, Bitcoin near $60,000
US May CPI rose 0.5% MoM and 4.2% YoY as forecast; core CPI eased to 0.2% MoM (2.9% YoY). Bitcoin traded near $60,000 as markets digested the report.
The US Consumer Price Index for May matched forecasts, with headline CPI up 0.5% month-on-month and 4.2% year-on-year. Core CPI, which excludes food and energy, rose 0.2% month-on-month and 2.9% year-on-year. Bitcoin traded around the $60,000 level as traders assessed the data.
The Bureau of Labor Statistics report showed headline inflation remained elevated largely because of higher energy prices. Energy-related moves in global oil markets contributed to the monthly increase and kept overall inflation above the Federal Reserve’s 2% target.
Core inflation’s softer monthly reading indicates that price pressures outside food and energy did not accelerate in May. Shelter and services inflation continued to be a factor but did not show a sharp pickup in the latest month.
John Briggs, head of US rates strategy at Natixis North America, cautioned that the peak of conflict-driven inflation may have passed while stressing that any sustained improvement depends on oil prices remaining stable and not reigniting inflationary pressure.
Market pricing adjusted to the mix of a hotter headline and softer core reading. Futures markets reduced the probability of an immediate policy tightening while still pricing a scenario where interest rates remain elevated for an extended period.
Cryptocurrency markets reacted to the data with Bitcoin staying volatile near $60,000. Stephen Wundke, strategy and revenue director at Algoz Technologies, noted that meeting expectations eased immediate macro uncertainty and could prompt a short-term relief bounce in oversold assets. Observers also reported continued outflows from Bitcoin exchange-traded funds alongside corporate purchases by firms such as MicroStrategy.
Attention now turns to upcoming Federal Reserve comments and labor market data that will further shape policy expectations. Oil market moves will remain a key variable, since renewed upward pressure on energy prices could alter the inflation outlook and influence market pricing.
Articles by this author
