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U.S. CPI Inflation Slowed to 0.1% in May; Bitcoin Rises

U.S. CPI Inflation Slowed to 0.1% in May; Bitcoin Rises

CoindeskCoindesk2023/06/13 15:22
By:Stephen Alpher

The news on consumer prices comes one day ahead of the results of the Fed's latest monetary policy meeting.

The U.S. Consumer Price Index (CPI) for May came in softer than expected, rising just 0.1% in May versus 0.4% in April, according to the Bureau of Labor Statistics. Economist forecasts had been for a rise of 0.2%.

On a year-over-year basis, the CPI slowed to 4.0% in May versus 4.9% in April and forecasts for 4.1%.

The core CPI – which strips out volatile items like food and energy costs – was very much in line with expectations, rising 0.4% in May versus 0.4% in April and forecasts for 0.4%. Core CPI slowed to 5.3% year-over-year versus 5.5% in April and 5.3% expected.

The price of bitcoin () rose just under 1% to $26,375 in the minutes following the report.

This latest news on inflation comes one day ahead of the results of the U.S. Federal Reserve's monetary policy meeting. Prior to this morning's numbers, market participants had priced in about a 76% chance the Fed will end up pausing what's become an historic string of rate hikes dating back to March 2022. In the few minutes after the news hit, the chance of a pause has risen to 79%.

Checking traditional markets, stock index futures aren't doing a lot, remaining modestly higher for the session after Monday's sizable gains. The 10-year Treasury yield has dipped three basis points to 3.71%, with the two-year yield off six basis points to 4.51%.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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