Core inflation remained relatively subdued, but headline shocks, strong demand, and a tight labor market complicate the outlook for monetary policy. Inflation

Headline CPI inflation is expected to top 4%.

US CPI for May matches forecasts, but softer core inflation at 2.9% cools market fears, keeping Bitcoin near $60,000.

May CPI headline inflation rose 0.5% MoM and 4.2% YoY, driven almost entirely by energy price shocks from Middle East conflict. Learn more about the US economy here.

The inflation story just got another plot twist. Fresh data from the U.S. Bureau of Labor Statistics showed May producer price inflation (PPI) jumped 6.5% year over year, higher than expectations of 6.

Headline inflation breaching the 4% mark for the first time since 2023 will rightfully get a lot of attention, but investors will pay more heed to another measure of price increases. That's the so-called core rate that omits food and energy.

Core inflation, which excludes the food and energy components hard-hit by the latest oil shock, rose moderately in May, but was unable to completely escape the effects of the ongoing conflict. Core CPI inflation measured 0.

Inflation accelerated to a three-year high last month, but core prices rose less than expected, an encouraging sign for investors worried that resurgent inflation could force the Federal Reserve to raise interest rates this year.

While headline inflation is high, core inflation showed some signs of easing in the May Consumer Price Index report.