Softer CPI Data Supports Risk Appetite; Bitcoin Finds Support Near $110K
Inflation in the U.S. edged lower than anticipated in May, lending fresh support to risk assets as the Federal Reserve’s path toward policy easing remains intact.
Headline CPI rose by 0.1% for the month, with core inflation also up just 0.1% — a meaningful deviation from the 0.3% expected by analysts. Year-over-year, core CPI held steady at 2.8%, marginally softer than projections.
The data landed just as crypto markets consolidated recent gains. Bitcoin rose modestly, gaining 0.6% to $109,800, signaling that the asset is holding firm as investors digest the cooling inflation narrative.
With inflation coming in below forecast, rate-sensitive sectors rallied, and bond yields pulled back. Equity futures in the U.S. gained ground, and Fed futures markets continued to price in two rate cuts before year-end — with the first move seen likely in September.
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