The US supercore CPI, which excludes food, energy, and shelter, climbed to 3.5% year over year in April, up from 3.4% in March. Month over month, it rose 0.5%.
Supercore is the Federal Reserve's preferred measure of underlying service-sector inflation, stripping out volatile shelter costs. The reading remains above the 3% threshold, giving the Fed cover to keep interest rates elevated.
This higher supercore reading signals a delay in rate cuts, putting pressure on risk assets like digital currencies. With money market funds yielding over 5%, speculative investments face stiffer competition for capital.