The Bureau of Labor Statistics will release the May Consumer Price Index report at 8:30 a.m. ET. Economists expect annual headline inflation to rise from 3.8% in April to 4.2%. Prediction-market also favored a 4.2% reading, while 4.3% ranked as the next most likely outcome. Meanwhile, traders expected monthly core inflation to increase by either 0.2% or 0.3%.
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April’s CPI report showed annual inflation of 3.8%, exceeding market expectations. Bitcoin later fell nearly 28%, moving from approximately $82,000 toward $60,000 within three weeks. At the same time, rising energy prices have added to inflation concerns, as higher fuel costs increase transport and production costs. Middle East tensions have contributed to stronger oil prices.
President Donald Trump said negotiations with Iran had entered their ‘final throes.’ He also said an agreement could arrive within two or three days. A reduction in regional tensions could lower oil prices and ease future inflation pressure. could improve liquidity expectations and support demand for risk assets, including cryptocurrencies.