Don't make the mistake of getting an i5; I see people with them constantly having issues with performance in games ranging from Valheim to numerous others.

Spend a little extra and get an i7+ that can handle multi-threaded operations. Ideally, something 4 Core/8 Thread, 6 Core/12 Thread.. or better. The 8700/8700K is an outstanding CPU that would serve you well. I use an 8086K, which is essentially a cherry-picked 8700K, and have had zero issues with any game since its release. (Paired with a 1080 Ti)

I cannot stress enough to stay away from an i5 if you intend to game at all. Alternatively to Intel, there are always equivalent or better-for-the-price AMD CPUs which would be more than adequate for this game and others. (And also better than an i5)

As far as falling GPU prices are concerned, whenever you decide to buy one, be SURE you aren't getting a "refurbished" or "re-certified" GPU. Chances are it came from a Crypto miner that dumped their 4+ GPUs on to the market with the hilarious crash of Crypto.

Edit: do a little research, check out benchmarks (Passmark Software specifically has benchmarks of basically everything from low to ultra high end on their website), and make sure that whatever CPU you pick is paired with a good motherboard with a lot of supporting features. I also highly suggest an SSD of some kind, be it SATA or PCI-e nVME.