🚨 May CPI weakens immediate Fed-cut case as Bitcoin traders watch macro outlook
Rising energy prices pushed U.S. inflation higher in May, complicating the Federal Reserve outlook and increasing macro pressure on crypto markets.
U.S. inflation accelerated again in May, complicating expectations for near-term Federal Reserve rate cuts and putting crypto markets back in focus as traders reassess the macro outlook for Bitcoin and other risk assets.
According to the latest Consumer Price Index [CPI] report released Wednesday by the Bureau of Labor Statistics, headline inflation rose 0.5% month-over-month in May after increasing 0.6% in April. Annual inflation climbed to 4.2%, up from 3.8% the previous month.
The report showed energy prices remained the largest driver behind the increase. Energy index rose 3.9% during the month and accounted for more than 60% of the overall CPI increase.