US CPI: Inflation Kicks Up to 2.4% in May, Still Lands Below Expectations. Here’s What’s Moving.

Prices were on the rise last month but not above forecast — the greenback fell as the print fueled hopes of the so-wanted interest rate cut.

📢 Inflation Undershoots Forecasts

• US CPI USCPI rose 2.4% year-over-year in May, a notch below the 2.5% Wall Street had penciled in. The cooler-than-expected print gives the Fed some breathing room — even as Trump's tariff barrage adds cost pressure across supply chains.
• The figure suggests inflation remains sticky but manageable, up from 2.3% in April, boosting investor hopes that rate cuts may not be off the table after all. Markets rallied on the news, seeing it as a green light for the Fed to consider loosening policy.
• The Fed is widely expected to hold interest rates steady at next week’s meeting (between 4.25% and 4.5%), but with inflation coming in softer, talk of a dovish pivot is bubbling back up.

💎 Dollar Dips, Euro and Gold Pop

• The EURUSD surged 0.5% to $1.1480, as forex traders bet the Fed might take its foot off the brake sooner than previously thought.
• Gold XAUUSD briefly spiked to $3,360, riding the wave of future lower real yields and a weaker dollar before trimming back some of the gains to settle near $3,330 per ounce.
• The US dollar softened across the board, with risk assets catching a bid on the inflation readout and growing rate cut chatter.

👌 Stocks and Bitcoin React Just OK

• US stock futures turned higher following the CPI release with Nasdaq futures up about 0.3%. S&P 500 futures were higher by 0.2% and Dow futures were flashing a tiny 0.1% pop ahead of the bell in New York.
• Bitcoin BTCUSD stayed steady just under $110,000, reacting with a shrug as traders apparently wanted something more to clear up the macro uncertainty. Still, any dovish shift by the Fed could stoke more upside in crypto.
• Across markets, the mood is cautiously bullish: inflation didn’t vanish, but it’s not spiraling — and that may be just what the Fed needs to keep the economic engine humming.