US inflation slows in May, reducing pressure on the market

• US inflation slows in May, easing markets
• Consumer Price Index rises just 0,1% in the month
• Annual increase in core CPI remains at 2,8%

The latest Consumer Price Index (CPI) report released on Wednesday (11) points to a more contained pace of inflation in the United States, with a direct impact on financial assets, including cryptocurrencies. Data for May shows that the CPI rose 0,1% compared to April, below the 0,2% expectation projected by economists.

In the annual comparison, the CPI increased by 2,4%, slightly above the 2,3% recorded in April, but still at a level considered moderate. The so-called core inflation, which excludes volatile food and energy prices, increased by 2,8% in twelve months — the same value as the previous month —, while the monthly increase was only 0,1%, also below the estimate of 0,3%.

The reduction in prices in categories such as new cars, used vehicles and clothing was crucial in containing the advance of inflation. These price drops are seen as a direct reflection of the trade tariffs previously announced by the Trump administration, but which were partially reversed in the following weeks.

According to Joe Brusuelas, chief economist at RSM, “we are not seeing much, if any, pass-through of tariffs,” when commenting on the 0,3% drop in prices for new vehicles and 0,5% for used vehicles. He points out that the market reaction was more restrained than expected, although he does not rule out future adjustments by companies.

This cooling of inflationary pressures comes at a sensitive time for investors, who remain attentive to the Federal Reserve's monetary policy. The expectation that more contained inflation will reduce the need for further interest rate hikes could directly influence the appetite for risky assets, including the cryptocurrency market.

With the release of the data, assets such as Bitcoin, which had already been showing signs of growth, may find additional momentum. For many analysts, this type of inflationary relief tends to favor alternative assets given the prospect of a less restrictive monetary policy.