Headline inflation rose an expected 0.5% in May, but the beat on the core rate — which cuts out food and energy costs — is pleasing markets.

US CPI rose to 4.2% in May 2026, the highest since April 2023. Core CPI hit 2.9%. Bitcoin dropped to $62,747 as rate hike odds climb to 70%.

Headline inflation rose an expected 0.5% in May, but the beat on the core rate — which cuts out food and energy costs — is pleasing markets.