Inflation slowed more than expected in May in the United States, which could give Federal Reserve officials some confidence that it is still on track to reach its 2% target.
The consumer price index (CPI) rose 3.3% year-over-year in May, according to data released by the Bureau of Labor Statistics on Wednesday. The economists surveyed by FactSet They expected prices to rise 3.4% last month, compared to the 3.4% pace set in April.
It was expected to show inflation rose 3.4% year-on-year in May, or at the same pace as in April, according to economists surveyed by Factset. Economists expected the monthly pace of inflation to slow to 0.1% last month, down from 0.3% growth in April.
Core CPI, which excludes more volatile energy and food prices and is considered a better indicator of the future path of inflation, was expected to slow to a rate of 3.5% from the 3.6% year-on-year pace recorded in April.
The data comes just hours before the Federal Reserve’s interest rate decision and officials’ economic forecasts for the year.
May’s core consumer price index, which excludes more volatile energy and food prices and is considered a better indicator of inflation prospects, registered 3.4% last month.
That is the lowest annual core inflation reading since April 2021 and a slowdown from the 3.6% year-over-year pace recorded in April. Economists expected core inflation to slow to 3.5% in May.
Inflation slowed more than expected last month, which could give Federal Reserve officials some confidence that it is still on track to return to the bank’s 2% target.
The consumer price index rose 3.3% year over year in May, according to data released Wednesday by the Bureau of Labor Statistics. Economists surveyed by FactSet expected prices to rise 3.4% last month, compared with the 3.4% pace set in April.
Source: Ambito
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