U.S. May CPI Hits 4.2% YoY, Highest Since April 2023; Core CPI Moderates to 0.2% MoM

According to HTX DeepThink analyst Chloe via BlockBeats, U.S. May CPI rose 4.2% year-on-year on June 11, marking the largest increase since April 2023, driven primarily by energy shocks from Middle East geopolitical tensions affecting global supply chains. Energy inflation surged 23.5% year-on-year with a 3.9% monthly increase. However, core CPI, which excludes volatile food and energy prices, increased only 0.2% month-on-month, below market expectations of 0.3%, signaling limited spillover into core services and goods. This moderation has reduced market expectations for near-term rate hikes, with futures showing less than 1% probability of Fed action at next week's meeting and only 13% likelihood in July, providing a near-term buffer for crypto assets.
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