The May Consumer Price Index (CPI) report has just been released, confirming that inflation in the United States rose exactly as economists had forecast.
Headline inflation climbed to 4.2%, the highest reading since April 2023. Core CPI, which excludes volatile food and energy components, increased to 2.9%, a nine-month high and in line with expectations.
This development is concerning because the Federal Reserve targets roughly 2% inflation as a healthy level. The Kobeissi Letter has warned that the probability of further interest-rate hikes is increasing, a prospect that could prompt additional selling pressure in the still-fragile cryptocurrency market.
Somewhat unexpectedly, Bitcoin (BTC) jumped on the news, rising toward $62,000 before pulling back to around $61,500, according to TradingView. Many major altcoins, including Ethereum (ETH), Solana (SOL), and Ripple (XRP), moved in tandem with BTC, but overall market conditions remain highly volatile and the short-term price direction is uncertain.