06/13/2023

Consumer Price Growth Slowed Last Month

Meanwhile, inflation shows signs of a steady decline

Last month, consumer prices in the United States cooled, rising just 0.1 percent from April to May and extending the past year’s steady easing of inflation. At the same time, some measures of underlying price pressures remained high.

Measured year over year, inflation slowed to just 4 percent in May — the lowest 12-month figure in over two years and well below April’s 4.9 percent annual rise. The pullback was driven by tumbling gas prices, a much smaller rise in grocery prices than in previous months and less expensive furniture, air fares and appliances.

Tuesday's inflation figures from the government arrived one day before the Federal Reserve is expected to leave interest rates alone after imposing 10 straight rate hikes dating back to March 2022. After a two-day meeting, the Fed will likely announce that it is skipping a rate hike but may hint that it will resume raising rates as soon as July.

Please select this link to read the complete article from The Associated Press.