Accessibility links

Breaking News
USA

US May Consumer Inflation Dropped


FILE: Memorial Day sale signs are shown at a shopping mall in Carlsbad, California, on May 25, 2023.
FILE: Memorial Day sale signs are shown at a shopping mall in Carlsbad, California, on May 25, 2023.

WASHINGTON — Consumer inflation in the United States cooled for an 11th straight month in May, the Labor Department said Tuesday, in an encouraging sign for policymakers seeking to rein in price increases.

The consumer price index (CPI), a key gauge of inflation, jumped 4.0 percent in May from a year ago, in line with analyst expectations and down from a 4.9 percent rise in April.

On a monthly basis, the CPI rose 0.1 percent in May, decelerating from 0.4 percent in April, the Labor Department said.

Excluding the volatile food and energy components, consumer inflation was up 5.3 percent over the last 12 months.

The data comes as Federal Reserve officials are set to begin a two-day policy meeting on Tuesday, with the figures expected to have a bearing on their interest rate decision at the end of the gathering.

While the U.S. central bank has embarked on an aggressive campaign of rate hikes, lifting the benchmark lending rate 10 times in a row since early last year, it is widely anticipated to pause this week.

But analysts caution that Fed policymakers are likely looking for a more sustained trend of cooling growth before they end their cycle of rate hikes.

Forum

XS
SM
MD
LG