U.S. May CPI Expected to Hit 4.2%, Boosting Fed Rate Hike Expectations

According to BlockBeats and Bitunix analysts, the U.S. May Consumer Price Index (CPI) data released today is expected to show a year-on-year increase of 4.2%, marking the first time it has exceeded 4% in nearly three years. The market anticipates this inflation pressure stems not only from energy prices but also from tariffs and rising service costs, while wage growth lags behind inflation.

Market participants are pricing in the possibility of the Federal Reserve resuming rate hikes as early as September, with bond markets reflecting this shift through rising yields on 2-year and 10-year Treasury securities. Additionally, the Bank of Japan is widely expected to raise its policy rate by 25 basis points to 1% next week, the highest level since 1995, signaling a broader global shift toward monetary tightening.