US Inflation Rises in May, Federal Reserve Expected to Maintain Rates

The U.S. Consumer Price Index saw an increase in May, with headline inflation rising 0.5% monthly and 4.2% annually, largely due to energy costs. Despite this acceleration, the Federal Reserve is anticipated to hold interest rates steady at its upcoming meeting. However, market sentiment now suggests a higher probability of a rate hike later in 2026, diverging from previous expectations.