US Inflation Shows Temporary Calm in May, But Tariff Risks Loom

US inflation ROSE a modest 0.1% in May, falling below economist forecasts of 0.2% and providing temporary relief to risk assets. The cooling was driven by declines in energy, vehicle, and clothing prices—a deceptive lull masking underlying pressures.

Trump-era tariffs have yet to fully impact price levels, with economists warning of potential inflation acceleration by late summer. The Bureau of Labor Statistics reported annual inflation at 2.4%, but market participants remain wary of fourth-quarter volatility.

Crypto markets often react inversely to inflation surprises, with Bitcoin and ethereum historically benefiting from dollar weakness. This report may extend the current risk-on sentiment, though tariff implementation timelines could alter trajectories for altcoins and exchange-traded products.