US Inflation Cools to 2.4% in May, Easing Market Tensions

US inflation unexpectedly softened in May, with the annual rate dipping to 2.4%—below the 2.5% consensus forecast. The Consumer Price Index rose just 0.1% month-over-month, significantly underperforming the 0.3% expectation. Core inflation remained stubborn at 2.8%, though still marginally below projections.

Energy prices proved decisive, with gasoline costs plunging 12% year-over-year. This dragged down broader price pressures despite persistent increases in housing and food categories. "Energy is doing the heavy lifting for disinflation," noted Adam Crisafulli of Vital Knowledge, though structural inflation persists in services sectors.

The moderation has temporarily alleviated volatility concerns across risk assets, including cryptocurrencies. Traders now await clearer signals from the Federal Reserve regarding potential policy responses to the mixed inflationary picture.