US CPI Stays Stable at 0.3%, Showing a Slight Dip in Inflation

Core CPI drops to 0.2% monthly, and 3.4% yearly, bringing bullishness into the market. Bitcoin price surged from $66,800 to $69,400

The latest Consumer Price Index (CPI) report from the U.S. government shows that inflation in the U.S. stayed the same at 0.3% in May. This stable rate offers some hope for financial markets worried about rising prices.

Meanwhile, the CPI, which measures the costs of goods and services across the country, didn’t change from the previous month, but it increased by 3.3% compared to a year ago. This marks a slight decrease from the 3.4% annual inflation rate reported in April.

Breaking down the numbers further, the report showed that the food index rose 0.4% in May after increasing 0.2% in April. The energy index also saw an uptick of 1.7% last month, following a 1.3% increase the previous month.

On the other hand, the commodities less food and energy index rose 0.2% in May, showing a slight slowdown from the 0.3% increase in April. This index, which is closely watched by the Federal Reserve, rose 3.4% over the past 12 months.

Economists had anticipated a slowdown in headline inflation to 0.1% for the month and an increase in the core CPI to 3.2%. However, both figures deviated from these expectations.

The report also showed that the gasoline index increased 3.1% in May after rising 1.1% in April. This increase was largely due to a 5.2% rise in the price of regular gasoline.

Furthermore, the natural gas index rose 1.1% last month after decreasing 0.3% in April. The electricity index also saw an increase of 0.4% in May, following a 0.2% uptick the previous month.