CPI inflation in the US slowed to 0.1% in May, while Bitcoin increased.

The U.S. Consumer Price Index (CPI) for May increased by only 0.1%, which is lower than expected. In comparison, it rose by 0.4% in April. This information was provided by the Bureau of Labor Statistics. Economists predicted a rise of 0.2%.

On a year-over-year basis, the CPI slowed to 4.0% in May from 4.9% in April, which is lower than the expected 4.1%.

The core CPI, which does not include volatile items such as food and energy costs, increased by 0.4% in May, which is in line with expectations. It also rose by 5.3% year-over-year, which is a decrease from April’s 5.5% and in line with the expected 5.3%.

The price of Bitcoin (BTC) rose by almost 1% to $26,375 after the report was released.

This recent news about inflation comes one day before the U.S. Federal Reserve’s monetary policy meeting. Prior to this morning’s numbers, market participants had priced in about a 76% chance that the Fed would pause the series of rate hikes that had been happening since March 2022. After the news was released, the chance of a pause increased to 79%.

Looking at traditional markets, stock index futures are not showing significant changes and remain modestly higher following Monday’s substantial gains. The 10-year Treasury yield has decreased by three basis points to 3.71%, while the two-year yield has decreased by six basis points to 4.51%.

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