Trump says he ‘loves’ inflation; CPI rise pressures Bitcoin

The U.S. Consumer Price Index rose 4.2% from a year earlier in May, the Bureau of Labor Statistics reported, with prices up 0.5% from April. President Donald Trump told reporters, ‘The numbers were great… I love the inflation.’

Energy costs accounted for most of the monthly gain. Energy rose 3.9% in May after a 3.8% increase in April. Gasoline averaged $4.15 per gallon in May, compared with about $2.98 on Feb. 28, the day U.S. and Israeli forces struck Iran. Real average hourly earnings fell 0.1% in May, the second consecutive monthly decline.

The CPI report arrives one week before the Federal Reserve’s June policy meeting, the first under Chair Kevin Warsh. Traders priced roughly a 98% chance the Fed will keep the target range at 3.5%–3.75% at next week’s meeting, and markets assign more than a 70% probability of a rate hike by the end of 2026.

Higher interest rates increase the appeal of cash and Treasury securities relative to assets that do not pay interest. Bitcoin traded near $62,000 after falling almost 24% over the past 30 days and sitting about 51% below its all-time high above $126,000. A roughly 1% intraday bounce did not reverse the monthlong decline.

When asked about oil flows through the Strait of Hormuz, Trump acknowledged efforts to move millions of barrels and said oil prices would ‘come down like a rock’ once the conflict ends.

Market participants will watch the Fed statement and any changes to forward guidance next week for information on the timing and size of future rate moves.