Bitcoin briefly slid to $58,200 on Thursday after fresh US inflation data showed the Federal Reserve’s preferred price gauge climbed to its highest level in more than three years.
The Personal Consumption Expenditures price index rose 4.1% year over year in May, compared with 3.8% in April, while the monthly reading remained at 0.4%, reflecting higher fuel costs despite moderation in other categories.
Core inflation, which excludes food and energy, increased to 3.4% from 3.3%, indicating that underlying price growth remains considerably lower than the headline figure. The inflation data was broadly in line with market expectations but is likely to reinforce the Fed’s cautious stance as policymakers assess whether inflation is cooling sufficiently to justify lower interest rates.
Consumers continued to show resilience despite higher costs. Disposable income increased 0.7% before inflation and 0.3% after adjusting for rising prices, while spending advanced 0.3%. Savings also improved modestly.
Meanwhile, the Commerce Department revised US economic growth upward to 2.1%, citing a smaller-than-previously-estimated impact from imports.
