According to data published by the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) increased 4.2% year-over-year in May, matching market forecasts. The figure marked an acceleration from April's 3.8% reading and suggested that inflationary pressures remain persistent across the economy. On a monthly basis, CPI rose 0.2%, below expectations.
Core inflation, which excludes food and energy prices, increased 2.9% annually and also met analyst estimates. Following the report, markets continued to expect the Federal Reserve to leave interest rates unchanged at its June 17 meeting. CME FedWatch data shows a 98% probability of rates remaining steady, while the possibility of a 25-basis-point hike later this year remains on the table.
Bitcoin (BTC) showed only a modest reaction to the inflation release and continued trading around the $62,000 level. Meanwhile, U.S. stock index futures moved lower and the 10-year Treasury yield climbed to 4.5%. Investors continue to assess whether persistent inflation could force the Fed to maintain restrictive monetary policy for longer than previously expected.
