06/13/2023

Inflation Eased Further in May

However, it remains above normal levels

Inflation eased further in May, but some of the most persistent price increases slamming the budgets of families and businesses look like they could stick around for a while still.

The fight to tame prices has come a long way since last year, when inflation peaked at 40-year highs, reaching 9.1 percent on a year-over-year basis in June 2022. As the Federal Reserve struggled to rein prices in, experts feared that the central bank would have to move so aggressively to slow the economy that it would cause a recession.

But the latest snapshot shows a different picture — even if it is not one of pure success. A report Tuesday from the Bureau of Labor Statistics showed inflation eased for the 11th straight month in May. Prices rose 4 percent in comparison with a year earlier, the smallest 12-month increase since March 2021, and an improvement from the 4.9 percent annual rate in April. Prices also rose 0.1 percent in May over the previous month.

Please select this link to read the complete article from The Washington Post.