Annual inflation accelerated to 4.2% in May, driven largely by higher fuel costs, as rising prices continue to weigh on household budgets and cloud the Federal Reserve's interest-rate outlook.

US inflation hit 3.8% in April 2026, a three-year high, with forecasters warning it could top 4%. Bitcoin holds above $80K as the Fed freezes rate cuts.

Economists expect the Consumer Price Index this week to show U.S. inflation continuing to rise due to higher energy costs.