US inflation unchanged in May; consumer spending rises marginally

Reported 12 months ago

U.S. monthly inflation remained flat in May, with a slight increase in service costs offset by the largest decrease in goods prices in six months, potentially paving the way for a Fed interest rate cut. Consumer spending also saw a marginal increase last month. The slow pace of underlying prices raised hopes for a 'soft landing' for the economy, with traders predicting a Fed rate cut in September. Inflation is receding after a spike in the first quarter due to previous rate hikes, and financial markets see a higher likelihood of policy easing starting in September.

Source: YAHOO

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