Reported 7 months ago
US consumer prices in May remained flat with no growth in the monthly Consumer Price Index (CPI) due to a decline in gas prices, bringing the annual rate down to a three-month low of 3.3%. The core CPI also slowed to 3.4%, marking the lowest increase since April 2021. The cooling inflation for the second consecutive month has reignited market expectations of a potential rate cut by the Federal Reserve later this year. The decrease in energy prices led to the cooling inflation in May, with oil prices dropping by 3.6% and food prices rising slightly by 0.1%. Housing costs increased by 0.4% monthly and 5.4% annually. Although the inflation rate is still above the Fed's target at 2%, the recent trend has provided confidence in addressing inflation concerns.
Source: YAHOO