U.S. Inflation Surprises Market: CPI Hits 2.4% Below Expectations

The U.S. Consumer Price Index (CPI) for May 2025 reported a year-over-year increase of 2.4%, slightly below the market’s expectation of 2.5%. The core CPI, excluding food and energy, rose by 2.8%, also underperforming the anticipated 2.9%. Month-over-month, both headline and core CPI saw a 0.1% increase, against expectations of 0.2% and 0.3% respectively. This lower-than-expected inflation data led to a positive market reaction, with investors viewing it as beneficial for risk-on assets like Bitcoin and stocks. Discussions highlighted that this data might reduce the likelihood of the Federal Reserve cutting interest rates in the near future. Despite President Trump’s tariff policies, the inflation rate was seen as a sign of economic stability, with some attributing this to his administration’s economic strategies.